German inflation posts surprise drop to 2% in August

German inflation posts surprise drop to 2% in August


Women with KaDeWe carrier bags walk past the entrance to the Kaufhaus des Westens department store. 

Jörg Carstensen | Picture Alliance | Getty Images

The harmonized German consumer price index eased to 2% in August, coming in lower than analysts had expected, preliminary data from the German statistics office Destatis said Thursday.

A Reuters poll had forecast the CPI would be 2.3%. In July, the harmonized CPI figure was 2.6% on an annual basis.

On a monthly basis, harmonized CPI dipped by 0.2%.

Inflation readings are harmonized in the euro area and in the European Union to ensure comparability.

Core inflation, which strips out energy and food costs, came in at 2.8% compared with the same period last year, slightly lower than the 2.9% in July. Destatis data showed a 5.1% annual drop in energy costs in August.

Several major German states had reported easing inflation earlier in the day Thursday. The data comes a day before euro area inflation figures are due to be released, which investors will be closely watching for clues about the outlook for forthcoming interest rate cuts from the European Central Bank.

Questions about a potential September rate trim have been swirling, after the central bank held rates steady in July. It had reduced interest rates in June.

“If confirmed by tomorrow’s eurozone inflation data, today’s German data should make the decision to cut interest rates at the September meeting a bit easier for the ECB,” Carsten Brzeski, global head of macro for ING Research, said in a note Thursday.

“Fading inflationary pressure combined with fading growth momentum offer an almost perfect macro backdrop for another rate cut.”

However, forward-looking inflation indicators, including wage growth and selling price expectations, suggest caution is still needed, Brzeski noted.



Source

Best Stocks: Another name to ride the trading boom than Robinhood that’s cheaper
World

Best Stocks: Another name to ride the trading boom than Robinhood that’s cheaper

(This is The Best Stocks in the Market , brought to you by Josh Brown and Sean Russo of Ritholtz Wealth Management.) Josh — Robinhood (HOOD) gets lots of attention in the market given its rapid user growth and colorful approach to exposing millions of young people to investing. Its share price has increased almost […]

Read More
Nvidia stock turns positive in premarket trading as investors buy dip following earnings report
World

Nvidia stock turns positive in premarket trading as investors buy dip following earnings report

Jensen Huang, CEO of Nvidia, speaks during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, on June 11, 2025. Gonzalo Fuentes | Reuters Nvidia stock briefly turned positive on Thursday during premarket trading after the chipmaker reported better-than-expected earnings and revenue for the fiscal second […]

Read More
CNBC’s Inside India newsletter: India’s three-way balancing act: Tariffs, oil, and uneasy handshakes
World

CNBC’s Inside India newsletter: India’s three-way balancing act: Tariffs, oil, and uneasy handshakes

Hello, this is Spriha Srivastava, CNBC International’s Executive Editor for Digital, writing from London. This week, I take a closer look at India’s tightrope walk — tariffs from Washington, oil from Moscow, and an uneasy handshake with Beijing. Let’s dive in. Russian President Vladimir Putin, Indian Prime Minister Narendra Modi and Chinese President Xi Jinping […]

Read More