Germany ‘rebuilding pillars’ of national security


A file photo of a supermarket aisle
Some items in German grocery stores have seen prices shoot up Image: Annegret Hilse/REUTERS

Inflation in Germany rose to 2.9% in August, driven largely by sharply higher energy prices, the Federal Statistical Office confirmed on Thursday.

The annual rate was the highest since late 2023, up from 2.8% in July and 2.3% in June.

Energy prices rose 10.5% compared with August last year, accelerating from an 8.3% increase in July.

Motor fuels cost 27.7% more than a year earlier, while heating oil prices jumped 49.6%.

“Particularly noticeable was the rise in energy prices, especially for fuels, which was mainly caused by the Iran war,” said Federal Statistical Office President Ruth Brand.

Other household energy costs fell, however. Electricity prices were down 5.5%, natural gas including operating costs fell 2.9% and district heating was 1.0% cheaper.

Food prices were only 0.1% higher overall than a year earlier, after a 0.4% rise in July.

Some products became significantly more expensive, including eggs, up 15.2%, fresh vegetables, up 5.2%, and fish and seafood, up 4.4%.

Butter was 29.9% cheaper, while fresh fruit fell 5.6% and dairy products 5.5%.

Inflation across the eurozone also remains above the European Central Bank’s 2% target.

The ECB could raise its key interest rate on Thursday for the second time this year, from 2.25% to 2.50%. It increased rates in June for the first time in almost three years before leaving them unchanged in July.

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