German Inflation Climbs to 2.8% in July 2024 Due to Higher Energy Costs
July Inflation Data and Contributing Factors
By Maria Martinez
Inflation Overview
BERLIN, July 30 (Reuters) - German inflation rose in July on higher energy prices caused by the Iran conflict, while core inflation fell slightly.
Inflation accelerated to 2.8% year-on-year, in line with forecasts, preliminary data from the federal statistics office showed on Thursday.
Analyst Expectations
Analysts polled by Reuters had forecast the EU-harmonised consumer price index to come in at 2.8% in July, compared with 2.4% the month before.
Energy and Core Inflation Breakdown
Energy Inflation
Energy inflation drove the increase, rising to 8.3% in July from 3.4% in the previous month.
Core Inflation
Core inflation, which excludes volatile food and energy prices, fell to 2.4% from 2.5% in June.
Broader Euro Zone Context
Upcoming Euro Zone Inflation Data
The German data come ahead of the euro zone inflation release on Friday. Inflation in the bloc is expected to come in at 2.9%, slightly above June's 2.8%, according to economists polled by Reuters.
ECB Policy Response
The European Central Bank kept borrowing costs on hold in July but left room for more tightening in the coming months as a widening conflict in the Middle East pushed up energy prices again.
(Reporting by Ludwig Burger, Miranda Murray and María Martínez; editing by Thomas Seythal)