German inflation falls to 2% in August

Preliminary data from the Federal Statistical Office showed on Thursday that the inflation rate in Germany fell to 2% in August thanks to a decline in energy prices.

Analysts polled by Reuters had expected it to fall to 2.3% in August after consumer prices rose 2.6% in July on an annual basis based on consolidated data for comparison with other countries in the European Union, according to “Al Arabiya”

Core inflation, excluding volatile food and energy prices, was 2.8% in August.

Energy prices in Germany fell 5.1% in August compared to the same month last year, while service prices rose above average to 3.9%.

The German economy had declined by 0.1% in the second quarter of the year, according to final data published the day before yesterday, due to a slowdown in private consumption and a decline in industrial investment.

“After a slight increase in the previous quarter, the German economy slowed down again during the spring,” said Ruth Brand, director of the Federal Statistics Agency “Destatis”.