German inflation confirmed at five-month high

(Sharecast News) - German inflation picked up to a five-month high in August, according to final estimates released on Friday, as food prices ramped up and energy cost deflation slowed. In line with preliminary estimates released two weeks ago, Germany's consumer price index showed a 2.2% increase on last year in August.

That was up from 2% in June and July and the highest reading since March, marking the first acceleration in price pressures since November last year.

"The rate of inflation has inched up slightly for the first time this year," said Ruth Brand, president of the Federal Statistical Office, Destatis. "The increase in food prices accelerated in August. In addition, the decline in energy prices contributed less to slowing inflation than in the previous months."

Food prices were up 2.5% year-on-year in August, following a 2.2% increase in July, with marked prices increases for fruit (+7.1%), sugar, jam, honey and other confectionery (+6.9%), dairy products and eggs (+3.2%), and meat (+2.9%).

At the same time, energy prices fell at a 2.4% annual rate, with deflation easing from -3.4% in July.