By Maria Martinez

BERLIN (Reuters) – German inflation fell to its lowest level in more than three years in August, a second estimate confirmed on Tuesday, making it easier for the European Central Bank to cut interest rates this week.

Inflation eased to 2.0% in August, its lowest level since June 2021, thanks to lower energy prices.

German consumer prices, harmonised to compare with other European Union countries, had risen by 2.6% year-on-year in July.

Core inflation, which excludes volatile food and energy prices, slowed slightly to 2.8% in August from 2.9% the previous month.

In August, energy prices in Germany fell by 5.1% compared to the same month last year.

On the other hand, the rise in food prices accelerated for the fifth consecutive month. The prices of food were 1.5% higher in August than in the same month a year earlier, data from the statistics office showed.

The increase in service prices was markedly higher than overall inflation, posting a 3.9% rise in August year-on-year.

(Reporting by Louis van Boxel-Woolf and Maria Martinez, Editing by Friederike Heine and Andrew Heavens)