Germany’s inflation rises more than expected to 2.8% in July

Germany’s annual inflation rate rose more than expected to 2.8% in July, according to provisional data released Thursday by the Federal Statistical Office, Destatis. The market expectation was 2.7%.

The consumer price index increased 0.8% on a monthly basis, accelerating from an annual rate of 2.3% in June.

The increase was mainly driven by energy prices, which climbed 8.3% year-on-year, sharply higher than the 3.4% rise recorded in June.

Goods inflation accelerated to 2.5% from 1.7%, while services inflation eased to 2.9% from 3.1%.

Food prices increased 0.4% annually, unchanged from the previous month.

Core inflation, which excludes volatile food and energy prices, declined slightly to 2.4% from 2.5%.

Germany’s harmonized consumer price index, used for comparison across the EU, also rose 2.8% year-on-year and 0.9% month-on-month in July.