Germany's Inflation Rate Slows to 2.9% in August

The European Central Bank (ECB) got some welcome news on Thursday as Germany's annual inflation rate, measured by the Harmonized Index of Consumer Prices (HICP), came in at 2.9% in August.

This is below market expectations of 3.1% and down from 3.2% in July, according to preliminary data released on Thursday.

The decline was driven mainly by lower energy prices, which fell 1.2% year-on-year, while food inflation eased to 1.8%. However, services inflation remained sticky at 3.9%, indicating that domestic price pressures persist.