Germany: Harmonized inflation drops to three-and-a-half-year low in August
Latest reading: Harmonized inflation fell to 2.0% in August from July’s 2.6%, matching the ECB’s target of 2.0% for the first time since March 2021. Looking at the details of the release, lower price pressures for transportation plus housing and utilities outweighed a faster increase in costs for food and non-alcoholic beverages.
Accordingly, the trend pointed down, with annual average harmonized inflation coming in at 2.8% in August (July: 3.2%). Meanwhile, consumer price inflation fell to 1.9% in August from July’s 2.3%.
Lastly, harmonized consumer prices dropped 0.23% from the previous month in August, contrasting the 0.54% rise logged in July. August’s result marked the weakest reading since November 2023.