Inflation in Germany weakened in August!
The monthly figure rose by 0.2%, below the forecast of 0.3%.
Inflation in Germany came in below economists’ expectations in August. According to preliminary data from the Federal Statistical Office, consumer prices harmonized with the European Union increased 2.9% year on year, below analysts’ forecast of 3.1%. On a monthly basis, prices rose 0.2%, also below the expected 0.3%. Preliminary estimates show that German consumer prices increased 0.2% month on month and 2.9% annually in August. Changes in energy prices remain one of the key drivers of inflation.
The end of a temporary fuel tax reduction introduced in June led to higher heating oil and gasoline prices. Education costs also contributed to inflation with the start of the new school year. These figures are important for the European Central Bank’s monetary policy decisions. Investors expect interest rates could be raised further next year. In the eurozone, inflation is forecast to rise to 3.3%. This situation is creating additional uncertainty in markets and keeping investors focused on inflation developments.