German inflation dips below 2% for first time since 2021, final estimates confirm

German inflation was confirmed at 1.9% in August, its lowest level in three and a half years, according to final estimates from Destatis on Tuesday.

The year-on-year change in consumer prices eased from 2.3% in July and matched the preliminary estimate released two weeks ago.

This was the first time the consumer price index has dipped below the key 2% mark since March 2021 as energy prices dropped 5.1%, compared with a 1.7% decline in July.

The harmonised index of consumer prices, which is weighted to give a comparable reading across the eurozone, was confirmed at 2%, down from 2.6% the month before.

"Falling energy prices slowed inflation more significantly in August than in the previous months," said Ruth Brand, president of the Federal Statistical Office. "On the other hand, price increases for services, which are still above average, drove inflation up."

Services inflation was 3.9% in August, unchanged from the previous month, while food inflation picked up to 1.5% from 1.3%.