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German Inflation At 17-Month Low
(RTTNews) - Germany's consumer price inflation slowed slightly to a 17-month low in August on slowing food price growth, flash data from Destatis revealed on Wednesday.
Consumer prices posted an annual increase of 6.1 percent in August after rising 6.2 percent in July. This was the lowest rate since March 2022. Prices were forecast to gain 6.0 percent.
Excluding food and energy, core inflation remained unchanged at 5.5 percent.
Food prices continued to log above-average growth in August, up 9.0 percent from the previous year. At the same time, energy prices advanced 8.3 percent largely due to the low base of comparison.
Month-on-month, the consumer price inflation held steady at 0.3 percent in July, in line with expectations.
Data showed that EU harmonized inflation slowed to 6.4 percent from 6.5 percent in July. The expected rate was 6.3 percent.
On a monthly basis, the harmonized index of consumer prices, or HICP, moved up 0.4 percent, which was a tad faster compared to economists' forecast of 0.3 percent. ING economist Carsten Brzeski said as long as the European Central Bank sticks to its current stance of putting more policy emphasis on actual data rather than expected data, a rate hike at the September meeting has become likelier.
The ECB has raised its rates by a cumulative 375 basis points with hikes in every policy session of the current tightening cycle that began in July last year.
Inflation for the 20-nation currency bloc, due on August 31, is forecast to slow to 5.1 percent from 5.3 percent in July.
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