Germany's inflation falls below 2% for 1st time since March 2021
Germany's annual inflation rate fell to 1.9% in August, its lowest since March 2021, thanks to a 5.1% decline in energy prices. However, rising service costs, up 3.9% from the previous year, continue to exert upward pressure on overall inflation.
- Economy
- Anadolu Agency
- Published Date: 09:40 | 10 September 2024
- Modified Date: 09:42 | 10 September 2024
Germany's annual inflation rate stood at 1.9% in August, in line with market expectations, marking the first time it has fallen below 2% since March 2021.
According to the federal statistical authority, Destatis, decreasing energy prices contributed significantly to the slower inflation rate in August compared to previous months.
Energy products saw a price decline of 5.1% in August on a yearly basis.
However, price increases for services, still above average, continued to drive inflation upward, Destatis noted.
Compared to the same month last year, the prices of services were up 3.9% in August 2024.
On a monthly basis, consumer prices rose by 0.1% in August.