German headline inflation has dropped for the first time since January. However, this is not yet the end of surging inflation rates but rather a good example that it is currently governments, not central banks, that can stop inflation. According to a first estimate based on the regional inflation data, German headline inflation came in at 7.6% year-on-year in June, up from 7.9% YoY in May. The HICP measure came in at 8.2% YoY, from 8.7% in May. Don’t be mistaken, this is not the start of the end but rather a government-induced temporary relief. Judging from the available regional inflation components, the drop in ... (full story)