German Inflation Rises Again in August

Life became more expensive in Germany again in August, with consumer prices rising 2.9% from a year earlier, according to a preliminary estimate from the Federal Statistical Office. Inflation stood at 2.8% in July and 2.3% in June.

Energy remained the main driver. Prices in the category rose 7.5% year on year, although that increase eased from 8.3% in July. The report linked higher oil prices to the renewed war in the Middle East.

North Rhine-Westphalia faced an additional pressure on fuel costs from exceptionally low water levels on the Rhine. Heating oil prices in the state rose 33.6% from a year earlier in August, while diesel increased 35.6% and petrol 24%.

Fuel prices in North Rhine-Westphalia rose 2.6% between July and August. The state statistics office also pointed to the low Rhine levels, which severely disrupted shipping on Europe’s most important inland waterway. The Federal Cartel Office said refineries are often supplied by barge.

Food prices nationwide increased by an average of 0.1%, compared with 0.4% in July. Services, including insurance and travel, cost 2.8% more than a year earlier. Core inflation, which excludes food and energy, remained at 2.4%. Overall consumer prices rose 0.2% from July to August.