Germany's inflation edges up, reinforcing the case for ECB rate hike

BlockBeats News, August 31st, Germany's inflation rate edged up slightly, further strengthening the case for the European Central Bank to raise interest rates next month. In August, the consumer price index rose by 2.9% year-on-year, higher than the previous month's 2.8% increase, reaching the highest level since April, but below analysts' median estimate of 3.1%. With the Middle East peace agreement still a long way off, energy prices once again became the main driver of inflation, while prices for services and food saw a slight decline.

Previously, data from France and Spain also showed that the rise in oil and gas prices is pushing up inflation across the region, increasing pressure on the European Central Bank to take action. ECB officials had already raised interest rates once and are expected to do so again on September 10th. Traders are betting that monetary policy will tighten further next year.