Germany August preliminary CPI +2.9% vs +3.0% y/y expected
- Prior +2.8%
- HICP +2.9% vs +3.1% y/y expected
- Prior +2.8%
- Core CPI Y/Y +2.4% vs +2.4% prior
- Full report here
Germany’s inflation rate is expected to rise to 2.9% y/y in August. On a monthly basis, consumer prices increased by 0.2% compared with July. The Harmonised Index of Consumer Prices (HICP), the measure used for comparisons across the Eurozone and which the ECB targets, also rose 2.9% annually and 0.2% monthly, matching the national CPI reading.
A key driver behind the increase was the rise in energy costs. Energy prices climbed 10.5% from a year earlier, significantly faster than the 8.3% increase recorded in July and the 3.4% rise seen in June.
Meanwhile, underlying inflation remained more contained. Core inflation, which excludes the volatile food and energy components, is estimated at 2.4% y/y in August. The market reaction has been rather muted to the data, as interest rate expectations remained unchanged. The ECB is widely expected to hike in September, but the appetite for futher tightening has been waning.
This article was written by Giuseppe Dellamotta at investinglive.com.