While headline inflation in Germany remained stable at an annual rate of 1.3%, this was only due to lower energy prices compensating for a significant jump in service prices from 1.2% year-on-year in May to 2.0% in June. While no core inflation data was released yesterday, one has to assume that this higher service inflation will lead to higher core inflation in Germany.A similar trend can also be seen in France, where inflation came in this morning above expectations at a monthly increase of 0.3% in June, taking the annual inflation rate to 1.4%.