Market research group GfK released its consumer confidence index for Germany on Wednesday. German Gfk consumer confidence index climbed to 10.2 in June from 10.1 in May, beating expectations for a decline to 10.0. It was the highest level since October 2001.

The increase was driven by a strong domestic demand and low inflation.

"Private spending is a key driver for economic growth this year," Gfk noted. But Gfk warned that the debt talks between Greece and its creditors, the Ukraine crisis and IS terrorism may weigh on consumption in Germany.