Key facts
- German annual inflation rose to 2.9% in August, up from 2.8% in July.
- The increase was primarily driven by higher energy prices.
- Core inflation, excluding food and energy, remained stable at 2.4%.
- Services inflation decreased to 2.8% year-on-year.
- The rise in energy prices was less than the expected 3.1%.
German annual inflation rose to 2.9% in August, an increase from 2.8% in July but below the expected 3.1%. The acceleration was primarily driven by higher energy prices, influenced by the ongoing Iran conflict and the discontinuation of a government fuel discount. Despite the rise in headline inflation, core inflation, which excludes volatile food and energy prices, remained stable at 2.4% year-on-year. Services inflation saw a slight decrease to 2.8% year-on-year. While energy product prices were up significantly compared to the previous year, prices for household energy, electricity, natural gas, and district heating were lower due to government measures. Food prices saw a modest increase of 0.4% year-on-year.