Germany's inflation rate slips for 2nd straight month in July

ANKARA

The annual inflation rate in Germany declined for a second straight month in July, slipping to 7.5% from 7.6% in June, according to official estimates released on Thursday.

The market forecast for the figure was 7.4%.

Data from the federal statistical office Destatis showed costs for energy fell in July compared to June (35.7% vs 38%) and services (2% vs 2.1%), while food and rent prices increased – 14.8% vs 12.7% and 1.8% vs 1.7%, respectively.

Destatis said the main reason for the high inflation rate are energy prices driven up by the Ukraine war.

“Another factor with an upward effect on prices is interruptions in supply chains caused by the COVID-19 pandemic. Special effects such as the impact of the 9-euro ticket and the fuel discount are included in the results,” read the statement.