The economy German inflation back below 2.0 percent

Inflation in Germany is falling significantly. In August, consumer prices were 1.9 percent higher than in the same month last year, according to the Federal Statistical Office.

According to the evaluations of the state statistical offices, energy in particular was cheaper than a year ago, while prices for services rose at an above-average rate.

Overall, the price pressure is falling on consumers. In July, statisticians had recorded a 2.3 percent rise in consumer prices after 2.2 percent in June and 2.4 percent in May.

In August, prices were 0.1% lower overall than in July. Core inflation excluding energy and food fell by 0.1 points to 2.8 percent.

Economists had already anticipated a trend towards stable prices in the summer. The Munich-based Ifo Institute expects the inflation rate in Germany to remain below two percent in the coming months. This is based on a survey of companies' price plans published on Thursday.