Destatis attributed the modest increase in inflation to continued declines in energy prices, which fell by 1.7 percent in July compared to a year ago.
BERLIN, Aug. 9 (Xinhua) -- Germany's inflation rate edged up slightly to 2.3 percent in July from 2.2 percent in June, according to data released by the Federal Statistical Office (Destatis) on Friday.
Since falling to 2.2 percent in March from 2.9 percent at the start of the year, inflation in the Europe's largest economy has fluctuated within a narrow range of 0.2 percentage points on a monthly basis, staying close to its 2-percent target.
Destatis attributed the modest increase in inflation to continued declines in energy prices, which fell by 1.7 percent in July compared to a year ago. "Decreases in energy prices, in particular, are having a dampening effect on the rate of inflation," said Ruth Brand, head of the statistics bureau. Meanwhile, food prices rose by 1.3 percent year-on-year in July, below the overall inflation rate.
Germany's core inflation rate, which excludes energy and food, stood at 2.9 percent in July. This figure has consistently exceeded the overall inflation rate throughout the year, indicating above-average increases in consumer prices across other key product groups. According to Destatis, services prices rose by 3.9 percent in July, with those for insurance services, social facilities services and catering services surging in particular.
"Increases in the cost of services are likely to ease only slowly in the coming months, given that wage growth remains strong," stated the German central bank's July report, noting that further declines in Germany's inflation rate are unlikely in the near future, although fluctuations may occur. ■
