Inflation in Germany, the euro one's biggest economy, picked up to 2% last month from 1.8% in July as a result of high oil prices.
The German consumer price index rose by 0.2% in August from the figure for July, the federal statistics office Destatis, said in a statement. The data confirmed preliminary estimates released last month.
'The higher annual rate of inflation in August is largely attributable to the fact that prices of petroleum products rose again,' the statisticians explained. The price of light heating oil, for example, was up by 24.6% on a 12-month basis and fuel prices rose by 8.1% year-on-year.
Excluding heating oil and fuel, the cost of living in Germany would have only risen by 1.6% on a 12-month basis, Destatis said.
At its current level, German inflation is at the limit allowed by the European Central Bank, which defines price stability as consumer price increases of no more than 2%.
According to the latest flash estimate, area-wide inflation reached 2.3% last month. ECB President Jean-Claude Trichet last week said it was unlikely that euro zone inflation would fall back below 2% this year and the guardian of the euro would remain vigilant with regard to possible inflationary dangers.
