Germany: inflation rose to 2.8% in July, the highest in 3 months

WHAT HAPPENED

Germany's annual inflation rose to 2.8% in July, up from 2.4% in June. In just one month, prices increased by 0.8%. Energy rose 8.3% compared to a year ago due to the end of temporary aids.

WHY IT MATTERS

The end of the supports made gasoline, diesel, gas, and electricity more expensive. This impact also reaches food, clothing, and other products that require transportation or energy. Since Germany is the largest European economy, this data may influence the ECB's decisions on rates.

AND FOR YOUR PORTFOLIO

For an individual, something that cost 100 euros a year ago now costs about 102.80. Transportation and heating feel the impact first. For investments linked to Europe, higher rates may increase the cost of loans and cool consumption and business activity.