- Jean-Claude Juncker, European Commission President
While all eyes are focused on Greece this week, following the weekend's unexpected and dramatic events, Germany's latest inflation data may provide temporary distraction. Consumer prices in the Euro zone's star economy slid into negative territory in June, the preliminary data showed. According to the German Federal Statistics Office, the flash CPI reading fell 0.1% in the month under review from May, whereas economists had expected a 0.1% rise. Measured on an annual basis, the cost of living in Germany increased 0.3% in June, missing expectations for a 0.5% gain and following the 0.7% growth in May. Yet, the annual indictor has remained in positive territory for five consecutive months, after plunging in January to the lowest level since July 2009. At the same time, the so-called Harmonized Index of Consumer Prices dropped 0.2% on month and rose 0.1% on year, following the 0.1% and 0.7% increase in the previous month, respectively.
Meanwhile, European leaders urge the Greek people to say ‘yes' in Sunday's referendum, expressing their disappointment with breakdown in talks with Greece over the weekend. Both German Chancellor Angela Merkel and the European Commission President Jean-Claude Juncker said that it was Greek side which deliberately moved in the standoff with its European partners.
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