German Inflation Hits 2.9% as Energy Costs Soar

Germany's inflation rate rose to 2.9% in August, up from 2.8% in July, driven primarily by a surge in energy costs.

The increase was largely due to the ongoing conflict with Iran, which has disrupted global energy trade and led to higher oil prices.

Consumer prices for food and services eased slightly, but the overall inflation rate remains above the European Central Bank's (ECB) 2% target.

According to ING economist Carsten Brzeski, most ECB members will likely see grounds for another interest rate hike in September due to high oil prices and the risk of a gas price shock.