WIESBADEN (FFN) – Inflation in Germany slowed to below 2% this month, reaching its lowest level in nearly 3.5 years. This was reported on Thursday by the German Federal Statistical Office, Destatis, which released preliminary data, according to DPA and AFP.
The year-over-year inflation rate in Germany was 1.9% in August, down from 2.3% in July. This figure, the lowest since March 2021, also surpassed analysts’ expectations, who had predicted a slowdown to 2.1%. The unexpectedly sharp decline increases the likelihood of a further reduction in interest rates by the European Central Bank (ECB) in September.
Core inflation, which excludes volatile items such as energy and food prices, also showed positive development, reaching 2.8% in August, down slightly from 2.9% in July.
| Indicator | July 2024 | August 2024 |
|---|---|---|
| Headline Inflation (%) | 2.3% | 1.9% |
| Core Inflation (%) | 2.9% | 2.8% |
Key Words: Germany, inflation, Destatis, ECB, core inflation, interest rates.
