German inflation slows

German inflation slowed in July after rising in June, official data showed Friday, but remained at levels that could trouble policymakers at the European Central Bank as they battle stubbornly high prices.

The annual inflation rate in Europe's largest economy fell to 6.2 per cent, down from 6.4 per cent in June, federal statistics office Destatis said in preliminary figures.

Consumer prices in Germany were no longer rising as quickly as they did at the end of last year after Russia's invasion of Ukraine sent the costs of energy and food soaring.

Inflation was "resuming its downward trend after a brief pause" in June, when the rate rose compared with May, said Fritzi Koehler-Geib, chief economist at public lender KfW.

"But for the time being the much too high inflation rate is only falling at an agonisingly leisurely pace," she said.

"A significant slowdown in the annual rise in consumer prices is not expected until September."

While energy prices have come off the boil somewhat, food costs showed no signs of slowing down, increasing by 11 per cent year-on-year, according to Destatis.

The new data came a day after the ECB hiked rates for the ninth time in a row.

Borrowing costs have risen at their fastest pace ever over the past year, climbing by 4.25 percentage points as the central bank looks to smother inflation in the eurozone.

President Christine Lagarde said the ECB's policymakers would keep an "open mind" on further rate hikes, and stressed their decision would be "data dependent".

July's inflation reading in Germany, the largest member of the eurozone, remained more than three times the ECB's two-per cent target.