BERLIN, July 30 Reuters The German economy unexpectedly shrank in the second quarter after skirting a recession at the beginning of the year, showing that the euro zone39;s biggest economy is failing to take off despite the easing of inflation pressures.

Germany39;s gross domestic product contracted by 0.1 in the second quarter compared with the previous threemonth period, preliminary data from the statistics office showed on Tuesday.

Analysts polled by Reuters had forecast a 0.1 quarteronquarter increase in adjusted terms, following 0.2 economic growth in the first quarter.

In a yearonyear comparison, GDP in the second quarter contracted by 0.1, adjusted for price and calendar effects.

Economists will pay close attention to national inflation data to be released later on Tuesday, ahead of euro zone inflation data on Wednesday.

Economists polled by Reuters forecast Germany39;s harmonised inflation rate at 2.5 in July, unchanged from a month earlier.

The inflation rate in North RhineWestphalia, Germany39;s most populous state, rose to 2.3 in July from 2.2 in June, suggesting that national inflation could rise this month.

Inflation also rose in Saxony and BadenWuerttemberg, but remained unchanged at 2.6 in Brandenburg and 1.8 in Hesse.

Inflation fell only in Bavaria, to 2.5 in July from 2.7 in June.

Reporting by Rachel More and Maria Martinez, editing by Kirsti Knolle and Bernadette Baum

Source Reuters