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German annual inflation confirmed to have slowed to 1.1% in July

Germany's annual harmonized inflation rate for July was confirmed at 1.1%, down from 1.5% in June, data from the Federal Statistical Office showed.

The reading came in below the European Central Bank target of just below 2%.

The harmonized consumer prices on a monthly basis increased by 0.4% in July, up from 0.3% in the previous month.

Annual nonharmonized consumer prices rose 1.7% in July, up from the 1.6% increase recorded in June. Energy prices increased by 2.4% year over year, slowing from the 2.5% growth recorded in June.

Food prices increased by 2.1% annually, while prices of housing, water, electricity, gas and other fuels rose 1.9%. Transport prices advanced 1.7%, while education prices fell 2.1%.

On a monthly basis, nonharmonized consumer price growth accelerated to 0.5% in July from a 0.3% increase in June.

The ECB signaled at its July 25 meeting that a package of stimulus measures is on the way amid a worsening economic outlook and persistently low inflation.