German Inflation Rate Rises To Highest Since July 2013


German consumer prices are expected to increase by 1.7 percent in the year to December 2016, following a 0.8 percent rise in the previous month and beating market consensus of a 1.5 percent gain. It was the highest inflation rate since July 2013, mainly boosted by a rebound in energy prices while cost of food and rents continued to grow, the preliminary estimate showed.

Year-on-year, prices of goods are expected to advance 1.8 percent, compared to 0.5 percent growth in the previous month, as cost of energy rose by 2.5 percent (from -2.7 percent in November) and food prices also increased by 2.5 percent (from +1.2 percent). Prices of services are expected to grow by 1.5 percent, following a 1.1 percent gain the previous month, mainly boosted by a 1.5 percent rise in cost of rents (from +1.1 percent in November).

Compared with November 2016, consumer prices are expected to increase by 0.7 percent, after rising by 0.1 percent in the previous month and better than expectations of a 0.6 percent advance.

The harmonised index of consumer prices is expected to increase by 1.7 percent from the previous year and it is expected to jump 1 percent from the previous month.

German Inflation Rate Rises To Highest Since July 2013


Destatis l Joana Ferreira | joana.ferreira@tradingeconomics.com
1/3/2017 1:12:55 PM