German inflation plunges to 2% as ECB prepares to cut rates

FRANKFURT, 29th August, 2024 (WAM) -- German inflation slowed to the European Central Bank’s (ECB) target in August – supporting the case for another cut in interest rates next month, Bloomberg reported on Thursday.

The 2 percent reading – the lowest since 2021 – was down from 2.6 percent in July.

The disinflation trend is expected to play out in the euro zone’s other two biggest economies – France and Italy – when numbers are published Friday. There will also be figures for the bloc itself, where analysts see a retreat to 2.2 percent and a nowcast from Bloomberg Economics predicts a return to the 2 percent target.