Inflation down in six German states, pointing to nationwide decline

By Maria Martinez

BERLIN (Reuters) – Inflation fell in six important German states in August, preliminary data showed on Thursday, suggesting that national inflation could decline noticeably this month.

In Saxony, the inflation rate fell in August to 2.6% from 3.1% in the previous month, in Brandenburg it fell to 1.7% from 2.6%, in Baden-Wuerttemberg it fell to 1.5% from 2.1%, in Hesse it fell to 1.5% from 1.8% and in Bavaria it fell to 2.1% in August from 2.5% in July.

The inflation rate in North Rhine-Westphalia, Germany’s most populous state, fell to 1.7% in August from 2.3% in July.

Economists polled by Reuters forecast a harmonised national inflation rate in Germany of 2.3% in August, down from 2.6% the previous month.

Economists will pay close attention to national inflation data later on Thursday, as Germany publishes its figures before the euro zone inflation data release, expected on Friday.

Euro zone inflation is expected at 2.2% in August, down from 2.6% in the previous month, according to economists polled by Reuters.

(Reporting by Maria Martinez, Editing by Rachel More)