German Inflation Hits 2.9% in August as ECB Gets Relief Before Sept. 4 Decision
Updated
Updated · Euronews · Aug 31
German Inflation Hits 2.9% in August as ECB Gets Relief Before Sept. 4 Decision
3 articles · Updated · Euronews · Aug 31
Summary
Germany’s EU-harmonised inflation rate rose to 2.9% in August from 2.8% in July, but missed the 3.1% forecast; monthly prices increased 0.2%, also below expectations.
A third straight acceleration still reflects the Iran-war energy shock and the end of Germany’s fuel duty discount, yet the softer-than-feared reading eases pressure on ECB hawks ahead of next week’s meeting.
The inflation print lands with mixed German data: second-quarter GDP was revised up to 0.3%, exports rose 2.6%, but machinery investment fell 1.4% and employment was down 212,000 from a year earlier.
Across the eurozone, inflation is diverging rather than converging—Spain’s harmonised rate jumped to 4.5% in August and France’s edged up to 2.7%—complicating the ECB’s task of setting one rate for uneven economies.