Overview

• The Federal Statistical Office confirmed headline CPI at 2.2% year over year in August, up from 2.0% in June and July, with prices rising 0.1% on the month.
• Food inflation reached 2.5% as coffee jumped about 22.8% and chocolate 21.3%, while vegetables fell 1.1% and sugar 29.2% versus a year earlier.
• Services prices rose 3.1% year on year, including roughly 11.1% for combined passenger transport and 6.4% for insurance, with rents up 2.0%.
• Energy costs were 2.4% lower than a year earlier, though the annual decline narrowed for a fourth straight month, reducing the drag on overall inflation.
• Core inflation stayed at 2.7% for a third month, and economists expect readings to remain above 2% in the near term.