BERLIN (Reuters) - German annual inflation slowed unexpectedly for the second consecutive month in August, data showed on Thursday, likely lending support to doves among ECB policymakers who want to inject more monetary stimulus into the single currency bloc.
German consumer prices, harmonized to make them comparable with inflation data from other European Union countries, rose by 1.0% year-on-year after an increase of 1.1% in the previous month, the Federal Statistics Office said.
The August reading undershot a Reuters forecast for 1.2% and marked the fourth month in a row that the inflation figure remained well below the European Central Bank’s target level of close to but below 2% for the euro zone as a whole.
On the month, EU-harmonized prices fell by 0.1% after an increase of 0.4% in the previous month. The market had expected an unchanged reading.
Reporting by Michael Nienaber; Editing by Paul Carrel