German Inflation Edges Up to 2.9%, ECB Rate Hike Uncertainty Lingers

Germany's inflation rate rose to 2.9% in August, slightly lower than expected.

The harmonised index of consumer prices climbed 0.2% month-over-month, with the annual rate increasing from 2.8% in July.

This marks a third consecutive increase, following an energy shock driven by the war in Iran and the expiry of Germany's fuel duty discount.

Despite this rise, the European Central Bank (ECB) may not be as concerned, given that inflation is decelerating against expectations.