German CPI Cools to 2.6% as Jobless Rate Dips to 6.3%

National German inflation data released midday confirmed softer price pressures, with May CPI easing to 2.6% y/y from 2.9% prior and below consensus. This followed morning regional prints showing Bavaria, Saxony and Baden-Wuerttemberg inflation all moderating. The labor market delivered a separate surprise, with unemployment falling 12k against expectations of a 10k rise and the jobless rate slipping to 6.3%. The combined data temper near-term ECB tightening bets, lending modest support to the Germany 40. Market reaction remains measured as traders weigh cooling inflation against stronger employment signals.