Singular Bank: According to the preliminary reading from Destatis, the year-on-year rate of change in Germany’s headline CPI for August came in at 1.9% (vs. 2.3% in July), below the analysts’ consensus estimate (2.1%) and registering its lowest level since March 2021.
This is a trend that has been accelerated by the reduction in the cost of energy. On a monthly basis, prices fell by 0.1% in August (vs. 0.3% in July).
In addition, core inflation moderated to 2.8% year-on-year (vs. 2.9% in July).
The positive inflation data in August in both Germany and Spain increase the likelihood that the ECB will also opt for a further 25 bp cut in the cost of money at its September meeting.
