Inflation rate in Germany falls to lowest level in three years

In August, Germany's annual inflation rate dropped to 2%, marking the lowest level since March 2021. Food prices, however, increased by 1.5% compared to August 2023. The European Central Bank is expected to further lower interest rates as inflation is no longer a pressing concern.

While energy prices decreased, other areas such as services and rents became more expensive. The core inflation rate, excluding energy and food, decreased to 2.8%.

Experts anticipate interest rate cuts, but see no price stability or growth driven by private consumption yet. Despite the decrease in inflation, there are concerns about the lack of price stability, prompting speculation about a potential interest rate cut by the European Central Bank.

Inflation in Germany fell below the 2% mark in August, with energy prices being 5.1% cheaper, while services became 3.9% more expensive. While the inflation rate is below the target set by the European Central Bank, there are still price increases in some sectors, including food and services.

The decline in energy prices played a significant role in lowering the overall inflation rate, but prices for goods and services continued to rise.