Inflation in Germany, Europe's largest economy, held steady in June as energy costs retreated.

The inflation rate, calculated using a harmonised European Union method, held at 2.4 per cent from May, the

Federal Statistics Office in Wiesbaden said today, confirming an initial estimate published June 28th. From May, prices remained unchanged.

While crude oil prices retreated 7 per cent in June, they're still 26 per cent higher than a year ago.

European Central Bank President Jean-Claude Trichet on July 7th raised borrowing costs for a second time this year, saying euro-region inflation will hold above the central bank's 2 per cent limit in the coming months.

"Consumer prices rose very little in June, which can be ascribed to a decline in energy prices," said Klaus Baader, an economist at Société Génerale in London. "In Germany, inflation rates reflect the economy's robust economic growth."

On a non-harmonised basis, inflation remained unchanged at 2.3 per cent in June and consumer prices rose 0.1 per cent in the month, the statistics office said.

Bloomberg