“Energy prices continued to increase at an above-average rate and therefore remained the key driver of inflation,” said Ruth Brand, president of the Federal Statistical Office (Destatis). Germany’s inflation rate stood at 2.3 percent in June and 2.6 percent in May, Xinhua reported. Brand said the sharp rise in motor fuel prices was driven by higher oil prices resulting from the ongoing war in the Middle East, as well as the expiry of the government’s temporary fuel tax cut at the end of June. The measure helped cushion the impact of higher oil prices on consumers through June. Meanwhile, persistently low water levels on the Rhine, caused by prolonged drought and extreme heat across Europe, are creating fresh inflation risks.