German inflation eases in August

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FRANKFURT, Aug 28 (AFP): Germany's latest inflation figures suggest that the worst of the recent sharp increase in prices might be over for both the country and the Eurozone, analysts said yesterday.

In August, the German consumer price index was up 3.1 per cent compared with a year earlier, coming off 3.3 per cent rates in July and June which were the highest readings since December 1993.

The reduction was a result of lower crude oil prices, the Destatis statistics service said.

On a monthly basis, consumer prices fell 0.3 per cent, it added, mainly as a result of lower costs for petroleum products, some food items and holidays.

Capital Economics economist Jennifer McKeown said the figures "provide some encouraging evidence that price pressures in the Eurozone's largest economy are beginning to recede."