According to Dutch economist Carsten Brzeski, the unexpected sharp decline in the German inflation rate is good news for the European Central Bank, as it seeks assurance for further interest rate cuts. Preliminary data released on Thursday showed that Germany's CPI in August pumped 1.9% year-on-year, reaching the lowest level in over three years and below the European Central Bank's target of 2%. Brzeski said, 'It ultimately shows preliminary signs of a broader anti-inflation trend, which goes beyond the scope of energy price impact.' Although wages in Germany and the eurozone are still rising high, it is too early to lift the inflation alarm now. However, Brzeski wrote in a report that the decline in price inflation clearly favors a rate cut by the European Central Bank in September.
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Gate.io: The European Central Bank is likely to be satisfied with the significant decline in inflation in Germany.
According to Dutch economist Carsten Brzeski, the unexpected sharp decline in the German inflation rate is good news for the European Central Bank, as it seeks assurance for further interest rate cuts. Preliminary data released on Thursday showed that Germany's CPI in August pumped 1.9% year-on-year, reaching the lowest level in over three years and below the European Central Bank's target of 2%. Brzeski said, 'It ultimately shows preliminary signs of a broader anti-inflation trend, which goes beyond the scope of energy price impact.' Although wages in Germany and the eurozone are still rising high, it is too early to lift the inflation alarm now. However, Brzeski wrote in a report that the decline in price inflation clearly favors a rate cut by the European Central Bank in September.