Prices in Germany are continuing to rise. According to an estimate released Monday by the Federal Statistical Office, the annual inflation rate is projected to be 2.9% for August, an increase from 2.8% recorded in July. While the final figures are always published mid-month, changes to the estimates are uncommon.
The core inflation rate-which excludes food and energy-is expected to reach 2.4% in August. The primary driver of this increase once again was energy prices, which are forecast to have risen by 10.5% compared to the previous year. This continued growth shows a worsening trend in energy cost inflation (July saw an increase of 8.3%; June saw an increase of 3.4%).
Meanwhile, food prices saw a minimal increase of only 0.1% year-on-year, according to the Federal Statistical Office. In contrast, service prices climbed by 2.8%.
