German inflation eases as forecast

GERMAN annual inflation eased in August in line with forecasts, suggesting price pressures in Europe’s top economy may have peaked, giving the European Central Bank one more reason not to raise interest rates any time soon.

Preliminary data from the Federal Statistics Office showed consumer prices rose 2.3%, still above the ECB’s target of just under 2%, but down from a 2.4% rise in the previous month.

Month-on-month, consumer prices fell 0.1% in August on lower energy prices, compared with a 0.4% rise in the previous month. This was also in line with economists’ forecasts in a Reuters poll.