German Inflation Ticks Up to 2.9%, Below Forecasts

Germany's inflation rate rose to 2.9% in August, according to preliminary data from the Federal Statistical Office.

This reading is below forecasts of a 0.3% month-on-month increase, which would have brought the yearly pace to 3%.

The harmonized consumer price index edged up by 0.2%, following three consecutive monthly advances tied to energy turmoil and Germany's fuel tax relief.

This development is significant as it represents a third straight monthly advance in inflation, with rates of 2.4% in June and 2.8% in July.

The European Central Bank (ECB) will closely watch this data ahead of its next rate decision, which is expected on Thursday.