BERLIN, June 14 (Xinhua) -- Germany's blue-chip DAX index maintained its upward trajectory and surged to a new record high on Wednesday against the backdrop of increasing signs of slowing inflation.

Ahead of the decision by the U.S. Federal Reserve (Fed) on its key interest rate, the Frankfurt-based stock exchange that lists Germany's 40 largest registered companies temporarily hit 16,336 points during Wednesday midday trading.

"The prospect of an interest rate turnaround in the U.S. and in Europe is a relief for investors and, as a logical consequence, ensures an upswing in the DAX," Marc Tuengler of the German Association for the Protection of Securities (DSW), told Xinhua on Wednesday.

"However, there is no euphoria, as investors are looking sensibly and objectively at the end of rising interest rates," he said.

Inflation in the eurozone continued to fall, but was still slightly higher at 6.1 percent in May, according to preliminary figures released by the bloc's statistical office Eurostat. Further interest rate hikes are expected to be announced on Thursday.

"For me, it is not a foregone conclusion that we will reach the interest rate peak as early as this summer," Joachim Nagel, head of the Deutsche Bundesbank and member of the European Central Bank's (ECB) Governing Council, recently said.

Among the biggest winners during trading on Wednesday was online fashion retailer Zalando, with shares rising more than 4 percent, followed by real estate giant Vonovia and automotive parts manufacturer Continental.

"The all-time high shows once again that a long-term equity investment is very worthwhile for shareholders," Gerrit Fey, head of the Capital Markets Department at the German Stock Institute (DAI), told Xinhua, adding that it was "also a sign of the competitiveness, adaptability and strength of the German economy as a whole." Enditem

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