German Inflation Rate Slows to 0.1% in April


Consumer prices in Germany are expected to increase slightly by 0.1 percent on the year in April of 2016, easing from a 0.3 percent growth in the previous month, matching market expectations. Cost of food and services rose at a slower pace while energy prices continued to weigh on inflation.

Year-on-year, prices of goods are expected to drop 1 percent, compared to a 1.2 percent fall in March, as cost of energy continued to fall (-8.5 percent from -8.9 percent) while food prices rose at a slower pace (+0.5 percent from +1.3 percent). In contrast, prices of services are expected to grow 1.1 percent, easing from a 1.6 percent growth in the previous month. Cost of rents is expected to go up 1 percent (+1.1 percent in March).

On a monthly basis, consumer prices are expected to fall 0.2 percent following a 0.8 percent increase in the previous month.

The harmonised index of consumer prices is expected to be down 0.1 percent year-on-year. Compared with March 2016, it is expected to decline by 0.3 percent.

German Inflation Rate Slows to 0.1% in April


Destatis | Joana Ferreira | joana.ferreira@tradingeconomics.com
4/28/2016 1:13:18 PM