German inflation rises to 2.9 percent in August

Inflation in Germany rose again in August. Goods and services rose in price by 2.9 percent compared to the same month last year, after 2.8 percent in July and 2.3 percent in June, as the Federal Statistical Office announced its first estimate on Monday. Oil prices have risen due to the renewed Middle East war. Special effects such as low water on the Rhine also had a negative impact - for example in North Rhine-Westphalia.

Energy prices rose by 7.5 percent compared to the same month last year, after 8.3 percent in July. The US and Israel's hostilities against Iran have driven up energy prices. In North Rhine-Westphalia, for example, heating oil cost 33.6 percent more in August than a year earlier, while diesel rose by 35.6 percent and gasoline by 24 percent. From July to August alone, fuel prices in North Rhine-Westphalia rose by 2.6 percent - "also against the background of the low water in the Rhine in August," as the State Statistical Office emphasized. Refineries are often supplied by inland waterway vessels, as the Federal Cartel Office explained.

Nationwide, food once again cost an average of 0.1 percent more (July: plus 0.4 percent). 2.8 percent more were charged for services such as insurance or travel (July: plus 2.9 percent). Prices excluding food and energy, also known as core inflation, rose again by 2.4 percent. From July to August, consumer prices rose by a total of 0.2 percent.

In other large euro countries such as France and Spain, inflation in August was also well above the European Central Bank's target of two percent. It could therefore raise its key interest rate in September for the second time this year to 2.5 percent. "Although the decisions remain dependent on the data situation, a further interest rate increase will likely be necessary unless the inflation outlook improves significantly," said the minutes of the ECB's July meeting. The central bank raised interest rates for the first time in almost three years in June and paused them in July.