German Inflation Rate Unchanged at 2-Year High


German consumer prices are expected to increase by 0.8 percent in the year to November 2016, the same as in the previous month and in line with market expectations. Inflation rate stood at its highest level since October 2014, as cost of food rose firmly while prices of services went up at a slower pace and those of energy continued to fall, preliminary estimate showed.

Year-on-year, prices of services are expected to advance 1.1 percent, compared to 1.3 percent growth in the previous month, as cost of rents is expected to go up 1.4 percent, the same as in October. By contrast, prices of goods are expected to rise by 0.5 percent, compared to a 0.4 percent gain in the previous month, as food prices rose 1.2 percent (compared to a flat reading in October) while cost of energy fell further (-2.7 percent from -1.4 percent).

On a monthly basis, consumer prices are expected to rise 0.1 percent, following a 0.2 percent growth in October.

The harmonised index of consumer prices is expected to increase by 0.7 percent from the previous year. However, it is expected to show no change from the previous month.

German Inflation Rate Unchanged at 2-Year High


Destatis l Joana Ferreira | joana.ferreira@tradingeconomics.com
11/29/2016 1:11:36 PM