Inflation in Germany remains at 2 percent

The ECB believes that an inflation rate of 2.0 percent will maintain its price stability objective. Lower price increases could hamper economic growth because individuals and companies could postpone investments in anticipation of even lower prices.

Expectations for the full year

Compared to June, prices rose by 0.3 percent, the authority reports.

The Bundesbank expects the inflation rate in Germany to fluctuate around the two percent mark in the coming months. The German Council of Economic Experts also expects the annual average to be around 2 percent in 2025.