rki.news | Sources Xinhua
BERLIN, Aug. 12: Germany’s inflation rate rose to 2.8 percent in July, up from 2.6 percent in May and 2.3 percent in June, with higher energy costs remaining the main driver, official data showed Wednesday.
Ruth Brand, president of the Federal Statistical Office, said energy prices increased 8.3 percent year-on-year in July, compared with 3.4 percent in June. Motor fuel prices rose sharply following higher oil costs linked to the Middle East conflict and the expiry of a temporary fuel tax cut at the end of June.
The latest increase follows an earlier energy-driven inflation surge that pushed Germany’s inflation rate to 2.9 percent in April, its highest level since January 2024.
Economists are now warning that record-low water levels on the Rhine could create additional price pressures. Prolonged drought and extreme heat have severely reduced water levels at Kaub, a key shipping point, restricting cargo transport along Germany’s major industrial waterway.
Reduced cargo capacity and longer transport times could raise energy and goods prices. Economists also warned that refineries along the Rhine may face difficulties receiving crude oil, potentially pushing fuel prices higher.
Berenberg Bank economist Felix Schmidt estimated that prolonged low water levels could temporarily add up to 0.5 percentage points to inflation.