August Inflation Confirmed at 2.9%, Highest Since Early 2024, as Fuel Prices Climb

The Federal Statistical Office (Destatis) confirmed on September 10 that Germany's consumer price index rose 2.9% year-on-year in August, up from 2.8% in July and 2.3% in June, with prices up 0.2% month-on-month. Core inflation (excluding food and energy) held at 2.4%. Destatis President Ruth Brand said 'higher energy prices were again the primary drivers of overall inflation' in August, with the increase 'caused primarily by the war in Iran, particularly noticeable in the case of motor fuel prices' — energy products rose 10.5% year-on-year and motor fuels 27.7%. Services prices rose 2.8% and goods 3.0%, while food inflation stayed subdued at 0.1%. Government measures held down electricity (-5.5%), natural gas (-2.9%) and district heating (-1.0%) costs, partly offsetting the fuel-driven pressure.