JAKARTA - German inflation rose higher than expected in July. The biggest pressure came from sharply soaring energy prices, even though core inflation actually fell slightly.
Anadolu Agency, quoted on Friday, July 31, reported that German annual inflation rose to 2.8 percent in July based on provisional data from the German Federal Statistics Office, Destatis, released on Thursday.
The figure is higher than the market forecast of 2.7 percent.
On a monthly basis, Germany's consumer price index rose 0.8 percent. In June, the country's annual inflation was still at 2.3 percent.
The rise in inflation was mainly driven by energy prices. Energy prices rose 8.3 percent year-on-year in July, much higher than the 3.4 percent increase in June.
Price pressure was also seen in the group of goods. Inflation of goods rose to 2.5 percent from the previous 1.7 percent.
However, service inflation actually fell. The pace slowed to 2.9 percent from 3.1 percent in the previous month.
Food prices rose 0.4 percent on an annual basis. The figure was unchanged from the previous month.
Core inflation also fell slightly to 2.4 percent from 2.5 percent. Core inflation is a measure of inflation that does not include food and energy prices because these two components often move sharply.
Anadolu noted that Germany's harmonized consumer price index also rose 2.8 percent year-on-year in July. This index is a benchmark for inflation in EU countries.
On a monthly basis, the German harmonized consumer price index rose 0.9 percent.
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