Prices in Germany are accelerating again. The Federal Statistical Office released an estimate this Thursday indicating that the annual inflation rate is likely to reach 2.8 percent in July, up from 2.3 percent seen in June. While final figures are always published mid-month in the following period, changes to the preliminary data are rare.
Looking at the core inflation rate-which excludes food and energy-it is expected to be 2.4 percent in July. A major contributor to this rise has been energy prices. They are forecast to increase by 8.3 percent year-over-year in July, possibly due in part to the phasing out of the previous fuel discount. In contrast, energy inflation stood at just 3.4 percent compared to the previous year in June, though it was 6.6 percent in May, even with the discount in place.
Meanwhile, food inflation remained relatively stable, rising by only 0.4 percent compared to the previous year, mirroring the trends seen in both May and June.
