Germany's annual inflation rate rises to 2.8% in July

Germany's annual inflation rate reached 2.8% in July, accelerating from 2.3% in June and 2.6% in May, the Federal Statistical Office (Destatis) reported on Wednesday.

On a monthly basis, the consumer price index increased by 0.8% from June to July.

Destatis President Ruth Brand stated that energy prices continued to rise at an above-average rate and remained the main driver of inflation.

Brand noted that motor fuel prices increased significantly compared to the previous month due to the discontinuation of a government fuel discount and rising oil prices stemming from the ongoing Iran war.

Energy product prices jumped 8.3% in July compared to the same month last year.

The cost of motor fuels surged 23% year-on-year, while heating oil registered a 34.7% price hike.

The country's core inflation rate, excluding food and energy prices, stood at 2.4% in July.

Food prices showed a below-average increase, rising 0.4% compared to July of the previous year.

The prices of services climbed 2.9% year-on-year, slightly slowing from the 3.1% rise recorded in June.