German Inflation Rate Rises To Fresh 3-1/2-Year High


German consumer prices are expected to increase by 1.9 percent in the year to January 2017, following a 1.7 percent rise in the previous month but missing market consensus of a 2 percent gain. Still, it was the highest inflation rate since July 2013, as prices for energy and food continued to rise, the preliminary estimate showed.

Year-on-year, prices of goods are expected to advance 2.7 percent, compared to 1.8 percent growth in the previous month, as cost of energy is expected to rise by 5.8 percent (from +2.5 percent in December) and food prices by 3.2 percent (from +2.5 percent). Prices of services are expected to grow by 1.2 percent, easing from a 1.5 percent gain the previous month; and cost of rents is expected to advance 1.6 percent (from +1.5 percent in December).

Compared with December 2016, consumer prices are expected to decline by 0.6 percent, after rising by 0.7 percent in the previous month and in line with expectations.

The harmonised index of consumer prices is expected to increase by 1.9 percent from the previous year and it is expected to fall 0.8 percent from the previous month.

German Inflation Rate Rises To Fresh 3-1/2-Year High


Destatis l Joana Ferreira | joana.ferreira@tradingeconomics.com
1/30/2017 1:11:44 PM