German Inflation Rate Hits 4-1/2-Year High In February


German consumer prices are expected to increase by 2.2 percent in the year to February 2017, following a 1.9 percent rise in the previous month and beating market consensus of a 2.1 percent gain. It was the highest inflation rate since August 2012, mainly boosted by higher prices of energy and food, the preliminary estimate showed.

Year-on-year, prices of goods are expected to advance 3.2 percent, compared to 2.7 percent growth in the previous month, as cost of energy is expected to rise by 7.2 percent (from 5.9 percent in January) and food prices by 4.4 percent (from 3.2 percent). Prices of services are expected to grow by 1.3 percent, following a 1.2 percent gain the previous month; and cost of rents is expected to advance 1.6 percent, the same as in January.

Compared with January 2017, consumer prices are expected to increase by 0.6 percent, after falling by 0.6 percent in the previous month and in line with expectations.

The harmonised index of consumer prices is expected to rise by 2.2 percent from the previous year and by 0.7 percent from the previous month.

German Inflation Rate Hits 4-1/2-Year High In February


Destatis l Joana Ferreira | joana.ferreira@tradingeconomics.com
3/1/2017 1:10:59 PM