Germany's economy expanded by a slim 0.1 percent in the second quarter of 2026, the Deutsche Bundesbank estimated in its July monthly report, with the official preliminary gross domestic product reading due for release on Thursday. The central bank noted the modest growth came despite the ongoing Iran conflict, which has kept oil prices above $100 per barrel and strained global energy markets.
Consumer inflation in Germany fell to 2.3 percent in June, down from 2.6 percent in May. However, the Bundesbank has cautioned that price pressures are likely to resurge, driven by the war with Iran and the expiry of a temporary fuel tax relief measure that lapsed at the end of June.
A preliminary inflation estimate for July is scheduled for publication Thursday and will offer the first hard data on whether the tax cut's expiration is already feeding through to consumer prices.