German Inflation Rate Rises to 6-Month High


Consumer prices in Germany are expected to increase by 0.4 percent on the year in July 2016, following a 0.3 percent gain in the previous month and beating market expectations. It is the highest inflation rate since January, mainly boosted by rise in prices of food and services while cost of energy fell more than in June. On a monthly basis, consumer prices went up 0.3 percent.

Year-on-year, prices of services are expected to grow 1.4 percent, the same pace as in June, as cost of rents is expected to go up 1.1 percent. In contrast, prices of goods are expected to drop 0.7 percent, compared to a 0.8 percent fall in June, as cost of energy fell 7 percent (from -6.4 percent in the previous month) while food prices jumped 1 percent (from +0.1 percent).

On a monthly basis, consumer prices are expected to rise 0.3 percent, accelerating from a 0.1 percent gain in June.

The harmonised index of consumer prices is expected to increase by 0.4 percent from the previous year. Compared with May 2016, it is expected to increase by 0.4 percent. 

German Inflation Rate Rises to 6-Month High


Destatis | Joana Ferreira | joana.ferreira@tradingeconomics.com
7/28/2016 1:12:32 PM