Inflation in Germany accelerated in August, with the Federal Statistical Office’s preliminary estimate showing consumer prices rising 2.2% from a year earlier, up from 2.0% in July and slightly above the 2.1% economists expected. On a month-on-month basis, prices gained 0.1%. The EU-harmonised index advanced 2.1% annually and 0.1% on the month, suggesting price pressures have firmed after a summer lull. Regional data released earlier in the day signalled the pickup, with annual inflation running between 2.0% and 2.5% across large states such as Bavaria, Baden-Wuerttemberg and North Rhine-Westphalia. At the same time, the demand backdrop looks fragile: separate figures showed retail sales fell 1.5% in July, the sharpest drop this year, while import prices remained in deflation at –1.4% on the year. Outside Germany, early inflation readings painted a mixed but generally subdued picture across the euro area’s biggest economies. France reported consumer-price growth of 0.9% year-on-year, Italy 1.6%, and Spain 2.7%, all broadly in line with or just below market expectations. Italy also confirmed a 0.1% quarterly contraction in second-quarter GDP, while France posted 0.3% growth. The data arrive two weeks before the European Central Bank’s policy meeting, where officials will assess whether the recent easing in price pressures is sufficient to keep rates on hold. While German inflation has edged above the ECB’s 2% target, the broader euro-area gauge is still expected to remain below it when the aggregate August figures are released next week.