German Inflation Rate Hits 16-Month High in September


Consumer prices in Germany are expected to increase by 0.7 percent on the year in September 2016, following a 0.4 percent growth in the previous month and beating market expectations of a 0.6 percent gain. Inflation hit its highest level since May 2015, as cost of services and food continued to rise while energy prices fell at a slower pace. On a monthly basis, consumer prices edged up 0.1 percent.

Year-on-year, prices of services are expected to grow 1.3 percent, the same pace as in August, as cost of rents is expected to go up 1.3 percent. In contrast, prices of goods are expected to drop slightly by 0.1 percent, compared to a 0.6 percent fall in the previous month, as cost of energy fell 3.6 percent (from -5.9 percent in August) while food prices rose 0.4 percent (from +0.9 percent).

On a monthly basis, consumer prices are expected to gain 0.1 percent, following a flat reading in August.

The harmonised index of consumer prices is expected to increase by 0.5 percent from the previous year. Compared with August 2016, it is expected to remain unchanged. 

German Inflation Rate Hits 16-Month High in September


Destatis l Joana Ferreira | joana.ferreira@tradingeconomics.com
9/29/2016 12:08:56 PM