German inflation rises to 2.9% in August, coming in below expectations
Inflation in Germany rose 2.9% in the year to August on the harmonised measure tracked by the European Central Bank, a fresh acceleration from July but well short of the 3.1% economists had expected, in a reading that offers modest relief to policymakers meeting in Frankfurt next week.
Frankfurt - Germany's inflation rate rose slightly in August, with goods and services costing an average of 2.9 percent more compared to the same month last year, according to a preliminary estimate by the Federal Statistical Office on Monday. Economists had anticipated this rate. Inflation was 2.8 percent in July and 2.4 percent in June.
Experts predict that inflation will briefly exceed three percent in the coming months, similar to two and a half years ago. Currently, energy prices are primarily driving inflation, increasing in August by 10.5 percent year-on-year. Record-low water levels have driven up fuel prices beyond the oil crisis caused by the Iran war. In North Rhine-Westphalia, prices rose by 2.6 percent within a month - even "against the backdrop of the historically low water levels in the Rhine in August", emphasized the state statistical office.
Inflation for goods has now risen to 3.0 percent, while services have seen a slight decline in their inflation rate, down to 2.8 percent. The core inflation rate, excluding volatile energy and food prices, remains at 2.4 percent, slightly above the European Central Bank's (ECB) two percent target.
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