German inflation slows as estimated

BERLIN (dpa-AFX) – German consumer price inflation fell in August, as initially expected, on the back of falling energy prices, final figures from Destatis showed on Wednesday.

Consumer price inflation fell to 1.9 percent in August, from 2.3 percent in July. The rate was in line with the preliminary estimate published on August 29.

The last time inflation was below 2 percent was in March 2021, when the rate was 1.8 percent.

EU harmonised inflation also fell to 2.0 percent, as estimated, from 2.6 percent in July. A similar rate was last reported in March 2021.

The drop in energy prices deepened to 5.1 percent from 1.7 percent in the previous month, while food prices rose 1.5 percent.

Core inflation, which excludes food and energy prices, slowed slightly to 2.8 percent in August from 2.9 percent the previous month. Core inflation was also in line with the flash estimate.

Meanwhile, services have recorded a 3.9 percent price increase since May 2024, Destatis said.

“The price increases for services, which are still above average, have increased inflation,” said Ruth Brand, President of the Federal Statistical Office.

On a monthly basis, the consumer price index fell by 0.1 percent. The harmonised index of consumer prices also fell by 0.2 percent on a monthly basis, partly offsetting the 0.5 percent gain in July. Both the CPI and HICP figures were in line with the preliminary estimate.

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