FRANKFURT, Aug 29 (AFP): German inflation fell to its lowest level in more than three years in August, official data showed Thursday, strengthening the case for another interest rate cut by the European Central Bank next month.
The annual inflation rate in Europe's biggest economy eased more than expected to 1.9 per cent, preliminary data from federal statistics agency Destatis showed, down from 2.3 per cent in July.
Analysts surveyed by FactSet had predicted an August inflation rate of 2.1 per cent.
The last time German inflation was below two per cent was in March 2021.
The August slowdown was driven by a 5.1-per cent decline in energy prices, while services inflation was sticky at 3.9 per cent.
Core inflation, which strips out volatile energy, food, alcohol and tobacco prices, remained elevated at 2.8 per cent.
"People have more money in their wallets again. Inflation is falling, real wages are rising for the fifth quarter in a row," Chancellor Olaf Scholz said on X.
Elsewhere in the eurozone, inflation also cooled in Spain in August as fuel and food prices eased, data released by the INE national statistics office showed Thursday.
The latest figures will make for welcome reading for European Central Bank policymakers as they weigh whether to cut interest rates at their meeting on September 12.
Eurozone inflation soared past 10 per cent in October 2022 after energy prices soared in the wake of Russia's invasion of Ukraine.
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