August 30, 2017 / 12:03 PM / a month ago

German inflation picks up more than expected, still below ECB target

BERLIN, Aug 30 (Reuters) - German consumer inflation accelerated more than expected in August but remained below the European Central Bank’s target, data showed on Wednesday, suggesting a solid upswing in Europe’s largest economy is slowly pushing up price pressures.

Consumer prices, harmonised to compare with other European countries (HICP), rose by 1.8 percent on the year after an inflation rate of 1.5 percent in the previous month, the Federal Statistics Office said. On the month, prices rose 0.2 percent.

Both figures came in stronger than expected, with a Reuters poll having pointed to an increase of 1.7 percent on the year and a rise of 0.1 percent on the month.

A breakdown of non-harmonised data showed energy and food costs were the main drivers of inflation while the cost of services did not rise as strongly as in July.

The data comes only days after ECB President Mario Draghi urged patience in the debate about his ultra-easy monetary policy, saying more time was needed to lift euro zone inflation to the bank’s target of nearly 2 percent in the whole bloc. (Reporting by Michael Nienaber; Editing by Michelle Martin)

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