6 German states report lower inflation in August ’24

Inflation fell across six major German states in August 2024, driven by lower energy prices according to preliminary data released on Thursday.

Saxony’s inflation rate dropped to 2.6 per cent from 3.1 per cent in July, while North Rhine-Westphalia, Germany’s most populous state, saw its rate decline to 1.7 per cent from 2.3 per cent.

Similar reductions were observed in Brandenburg, Baden-Wuerttemberg, Hesse, and Bavaria.

Economists expect Germany’s national inflation rate to follow this downward trend, with forecasts suggesting a drop to 2.3 per cent in August from 2.6 per cent in July. National figures are expected later today.

The decrease could influence the European Central Bank’s decision on interest rates, especially with the eurozone’s inflation data due on Friday.

Attribution: Reuters

Subediting: M. S. Salama