German Inflation Falls to 1.9% in August

German inflation fell to 1.9% in August, its lowest level since March 2021, driven by a significant decline in energy prices. This reduction strengthens the case for another interest rate cut by the European Central Bank (ECB) next month. Core inflation in Germany remained elevated at 2.8%, while services inflation was sticky at 3.9%. Similarly, Spain saw its EU-harmonized inflation drop to 2.4% in August, lower than expected. In contrast, Pakistan's year-on-year inflation rate is projected to decrease significantly to 9.6% in August 2024, driven by a high base effect, stable currency exchange rates, and lower international commodity prices. These developments provide a more favorable economic outlook for the ECB and respective national economies as they navigate through inflationary pressures.