BERLIN (Reuters) -Inflation rose in four sizeable German states in August, preliminary data showed on Friday, suggesting Germany’s national inflation rate could also increase this month, in line with analysts’ forecasts.
In Germany’s most populous state of North-Rhine Westphalia, the year-on-year inflation rate grew to 2.0% from 1.8% in July.
That upward trend was reflected in the states of Bavaria, Baden-Wuerttemberg and Lower Saxony, where the inflation rate rose to 2.1%, 2.5% and 2.2%, respectively.
National figures will be released later on Friday, with economists polled by Reuters expecting harmonised inflation in the euro zone’s largest economy to rise to 2.0% after a reading of 1.8% in July.
The German data comes ahead of the euro zone inflation release on Tuesday. Inflation in the currency bloc is expected to remain stable at 2.0% in August, according to economists polled by Reuters.
The ECB left its key rate at 2% at its July 23-24 meeting and it will probably do so again next month before discussions about further cuts likely resume in the autumn, especially if the economy weakens under U.S. tariffs, sources have told Reuters.
(Reporting by Miranda Murray, Editing by Rachel More)
Comments