Germany’s final CPI report was released this morning indicating inflation accelerated in July, mostly driven up by rising energy costs.
Europe’s powerhouse saw its inflation rate rise to 2.6 percent from 2.4 percent in June. A breakdown of the data finds that crude prices contributed to the increase, as crude oil rose in July before plunging at the end of the month as concern about the health of the U.S. grew.
The CPI was calculated on a European Union harmonized basis by the German Federal Statistics Office. On a non-harmonized basis, German inflation accelerated to 2.4 percent from 2.3 percent and consumer prices rose 0.4 percent in the month, the statistics office said.
The European Central Bank aims to keep inflation just below 2 percent within the union. However, a more pronounced global slowdown than currently expected should ease price pressures and will help maintain inflation low and. In June, the ECB forecast euro-area growth of 1.9 percent this year and said it expected inflation to average about 2.6 percent.
“Fears are increasing that there could be a global downturn again,” ECB Governing Council member Ewald Nowotny told Austrian state radio ORF on Tuesday.