Berlin: The consumer price index (CPI) in Germany was stable at 2% in July on a yearly basis, above market expectations, according to preliminary estimates released on Thursday. This stability comes after the CPI was at 2% in June, marking its lowest level since last October, as reported by the Federal Statistical Office (Destatis).

According to Anadolu Agency, the CPI figures showed a slight decrease from earlier months, with rates at 2.1% in May and April and 2.2% in March. This follows a 14-month high of 2.6% recorded in December. A key factor contributing to the inflation rate in July was the significant decline in energy prices, which fell 3.4% year-on-year.

Despite the drop in energy costs, services and food prices saw above-average increases, continuing to drive inflation. Service prices rose by 3.1%, while food prices increased by 2.2%. The core inflation rate, which excludes volatile food and energy prices, remained stable at 2.7% in June on an annual basis, unchanged from the previous month.

Consumer prices increased by 0.3% in July compared to June, rising from a stagnant 0% in the previous month and exceeding market estimates. These figures underscore the complexities of inflation dynamics in Germany, as various sectors experience differing price changes.