Germany Inflation Slows As Estimated In July

Germany consumer price inflation slowed as initially estimated in July but remained at an elevated level, final data from Destatis showed on Wednesday.

Consumer price inflation slowed to 7.5 percent from 7.6 percent in June. The rate matched the flash estimate published on July 28. In May, headline inflation hit a record high 7.9 percent.

Although the rate of inflation was slightly down again, it remained at a high level clearly above 7 percent.

Two measures of the relief package have had a slight downward effect on the overall inflation rate since June 2022: the 9-euro ticket and the fuel discount, Georg Thiel, President of the Federal Statistical Office said.

In addition, the EEG surcharge was abolished in July 2022, which had a slight downward effect on the increase in electricity prices.

Energy product prices were by 35.5 percent higher than in the same month a year earlier, following a 38.0 percent increase in June. At the same time, food prices gained 14.8 percent, which was the fifth consecutive rise.

Excluding energy and food, inflation was 3.2 percent, not even half the overall inflation rate.

Compared to the previous month, overall consumer prices gained 0.9 percent in July, as estimated, after a 0.1 percent increase in June.

The harmonized index of consumer prices, or HICP, rose 8.5 percent year-on-year, following an 8.2 percent increase in June. Month-on-month, the HICP gained 0.8 percent, in contrast to the 0.1 percent fall in June.

Both monthly and annual HICP rates were in line with the initial estimates.

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