By Maria Martinez

BERLIN (Reuters) – German inflation fell to its lowest stage in additional than three years in August, a second estimate confirmed on Tuesday, making it simpler for the European Central Financial institution to chop rates of interest this week.

Inflation eased to 2.0% in August, its lowest stage since June 2021, because of decrease vitality costs.

German client costs, harmonised to check with different European Union nations, had risen by 2.6% year-on-year in July.

Core inflation, which excludes unstable meals and vitality costs, slowed barely to 2.8% in August from 2.9% the earlier month.

In August, vitality costs in Germany fell by 5.1% in comparison with the identical month final yr.

However, the rise in meals costs accelerated for the fifth consecutive month. The costs of meals had been 1.5% greater in August than in the identical month a yr earlier, knowledge from the statistics workplace confirmed.

The rise in service costs was markedly greater than total inflation, posting a 3.9% rise in August year-on-year.