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Price growth in Germany held above 2 per cent in July, reflecting a sharp jump in energy inflation.

The consumer price index climbed 2.1 per cent year on year, on an EU-harmonised basis, according to the Federal Statistics Office. The reading released on Monday matched the expectations of economists polled by Reuters.

Energy prices climbed 6.6 per cent, with food prices up 2.6 per cent. Services inflation was milder at 1.6 per cent.

Excluding food and energy prices, the core rate was about 1.4 per cent, according to calculations by Commerzbank analyst Ralph Solveen.

He added: “However, this might change in the coming months, as the latest figures show a noticeably stronger rise in wages, which in the past usually also signaled a soon higher core inflation rate.”

Inflation has gotten a significant boost from higher energy prices, and also a rise in the price of some other inputs due to the US-led mounting global trade skirmish.

Mario Draghi, head of the European Central Bank, said last week that some of the recent rise in price growth would be temporary, although uncertainty over the inflation outlook in the eurozone had fallen.

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