Central Banks
German Inflation Plunges to 2% as ECB Prepares to Cut Rates
- Consumer-price growth eased from 2.6% in July; est. 2.2%
- Officials caution that inflation may quicken in months ahead
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German inflation slowed to the European Central Bank’s target in August — supporting the case for another cut in interest rates next month.
The 2% reading — the lowest since 2021 — was down from 2.6% in July and less than all but one economist surveyed by Bloomberg had estimated. A report earlier Thursday showed that price pressures also eased significantly in Spain, reaching a one-year low.