German inflation at 1.0 percent in August: statistics

9th September 2010, Comments 0 comments

German inflation slowed slightly in August, official data confirmed on Thursday, though wages could begin to pick up in Europe's biggest economy as it pursues its economic recovery.

Prices rose by 1.0 percent from the same month a year ago, the national statistics office said, confirming a preliminary estimate released on August 27.

On a monthly basis, consumer prices were unchanged from July, the Destatis office added.

In July, inflation hit a year high of 1.2 percent but this was still well under the European Central Bank's target of close to, but below, two percent.

Higher energy prices, in particular for heating oil, were the main drivers of inflation in August, Destatis said.

A key factor in Germany's mild inflation has been modest wage increases, but a branch of the trade union IG Metall has called for a six-percent pay rise, launching what is expected to be long and drawn-out salary negotiations.

© 2010 AFP

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