German inflation accelerated to 2.9% year-on-year in August, up from 2.8% in July, according to preliminary data released by the Federal Statistical Office on Monday.
The increase fell short of economist forecasts, which had projected a 3.1% rise in the EU-harmonized consumer price index. Energy prices drove the uptick, climbing 10.5% in August compared with 8.3% in July. Analysts attributed the acceleration in part to elevated energy and raw material costs stemming from regional geopolitical tensions.
Core inflation, which excludes volatile food and energy prices, remained unchanged at 2.4% for the month. The Federal Statistical Office did not provide a month-on-month comparison in its preliminary release.
The German government maintained its inflation projections for the year, forecasting an average rate of 2.7% in 2024. For 2027, the government expects inflation to average 2.8%.
The data precedes the release of euro zone inflation figures scheduled for Tuesday. Economists anticipate the broader bloc’s inflation rate to rise to 3.3% in August, up from 2.9% in July, according to a separate survey.
The August inflation print follows a period of elevated price pressures across Europe, with energy markets remaining sensitive to supply disruptions. The Federal Statistical Office’s preliminary estimate will be subject to revision as additional data are incorporated.
