German inflation hits 1.8 percent in August

Source: Xinhua| 2017-09-13 21:04:07|Editor: Zhou Xin
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BERLIN, Sept. 13 (Xinhua) -- Rising prices for food and energy have driven German inflation in August close to the 2 percent goal favored by the European Central Bank (ECB), the country's Federal Statistical Office reported on Wednesday.

Goods measured in the country's Consumer Price Index (CPI) were 1.8 percent more expensive last month compared with August 2016.

On a monthly basis, inflation rose by 0.1 percent following an annual rate of 1.7 percent measured in July.

Energy prices were a major driver behind the rise in inflation, increasing by 2.3 percent year on year. The cost of heating oil (up 10.4 percent), gasoline (up 4 percent) and electricity (up 2 percent) all rose, whereas natural gas became cheaper (down 2.9 percent)

Food prices were up by 3 percent as well in August compared with the same month last year.

"The increase in prices for food in August 2017 continues to be significantly higher than overall inflation," a statement from the statistical office read.

Butter recorded another month of steep price rises in the face of worsening European producer shortages, costing 59.7 percent more than it had last August.

Goods on average were 2 percent more expensive on an annual basis, while the cost of services rose by 1.6 percent during the same period.