Germany’s inflation rate ticked higher in August, adding to the case for another European Central Bank rate increase next month. Consumer prices rose 2.9% year over year, up from 2.8% in July and the highest reading since April, according to the figures cited by BlockBeats. The result still came in below the median analyst forecast of 3.1%.
Energy prices again served as the main driver of inflation as a Middle East peace agreement remained out of reach, while price pressures in services and food eased. Earlier data from France and Spain also pointed to rising oil and gas prices feeding inflation across the region, increasing pressure on the ECB to respond.
ECB officials have already delivered one rate hike earlier, and another increase is expected on Sept. 10. Traders are also betting that monetary policy will tighten further next year, reflecting expectations that inflation pressures may remain difficult to fully contain across the euro area.
Germany’s inflation rate rose slightly in August, strengthening the case for the European Central Bank to raise rates again next month, according to BlockBeats.
Consumer prices in Germany increased 2.9% year over year in August, up from 2.8% in the previous month. The reading marked the highest level since April, though it was still below the median analyst estimate of 3.1%.
With a Middle East peace agreement still far from reach, energy prices once again became the main driver of inflation. At the same time, service and food prices eased.
Earlier figures from France and Spain also showed that higher oil and gas prices were pushing up inflation across the region, adding to pressure on the ECB to act.
ECB officials had already delivered one rate hike earlier and are expected to raise rates again on Sept. 10. Traders are betting that monetary policy will tighten further next year.
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