Germany's Federal Statistical Office (Destatis) reported on Monday the country’s consumer price index (CPI) is expected to be flat m-o-m in August after rising 0.9 percent m-o-m in the previous month.

On the y-o-y basis, Germany’s CPI is seen to soar 3.9 in August, following a 3.8 percent climb in July. This represents the largest advance since December 1993, caused, in particular, by the value-added tax effect, as the German government cut the tax rates temporarily in July 2020 as a part of its support to the pandemic-hurt economy.

Economists had predicted inflation would rise 0.1 percent m-o-m and 3.9 percent y-o-y in August.

According to the report, food prices surged 4.6 percent y-o-y in August after a 4.3 percent y-o-y climb in July. Energy prices jumped 12.6 percent y-o-y after an 11.6 percent y-o-y surge in the previous month. Services costs rose 2.5 percent y-o-y, accelerating from 2.2 percent y-o-y in July.

Meanwhile, the harmonized index of consumer prices for Germany (HICP), which is calculated for European purposes, is expected to advance 0.1 percent m-o-m and 3.4 percent y-o-y.