Germany’s August Preliminary Inflation Edges Up to **2.9%** Year-on-Year, Below Forecasts

• German August HICP rose to 2.9% YoY, below 3.1% forecast.
• National CPI also 2.9% YoY, missing 3.0% expectation.
• Energy prices surged 10.5% YoY, driving the increase.
• Euro showed limited immediate market reaction.

Germany’s preliminary Harmonized Index of Consumer Prices (HICP) for August increased to 2.9% year-on-year, up from 2.8% in July, but came in below the 3.1% forecast. The national Consumer Price Index (CPI) also registered a 2.9% year-on-year rise, missing the 3.0% expectation. On a monthly basis, both HICP and CPI grew by 0.2%, which was slower than anticipated. A significant contributor to the inflation uptick was a 10.5% year-on-year surge in energy prices. Despite the data, the Euro saw no major immediate reaction, with EUR/USD trading slightly higher near 1.1595. This inflation data provides input for the European Central Bank’s upcoming policy considerations.