Finance News

German inflation posts surprise drop to 2% in August


Women with KaDeWe carrier bags walk past the entrance to the Kaufhaus des Westens department store. 

Jörg Carstensen | Picture Alliance | Getty Images

The harmonized German consumer price index eased to 2% in August, coming in lower than analysts had expected, preliminary data from the German statistics office Destatis said Thursday.

A Reuters poll had forecast the CPI would come in at 2.3%. In July, the harmonized CPI figure was 2.6% on an annual basis.

On a monthly basis, harmonized CPI dipped by 0.2%.

Inflation readings are harmonized in the euro area and in the European Union to ensure comparability.

Core inflation, which strips out energy and food costs, came in at 2.8% compared with the same period of last year, slightly lower than the 2.9% of July. Destatis data showed a 5.1% annual drop in energy costs in August.

Several major German states had reported easing inflation earlier in the day on Thursday. The data comes a day before euro area inflation figures are due to be released.

This is a breaking news story and will be updated.



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