German Inflation Rate Highest Since May 2015

Consumer prices in Germany are expected to rise 0.5 percent year-on-year in January of 2016, up from a 0.3 percent growth in December and reaching its highest level since May last year, as prices of rents and food rose further while cost of energy fell at a slower pace.

Year-on-year, prices of services are expected to grow 1.2 percent, the same pace as in the previous month, boosted by a 1.1 percent increase in cost of rents. In contrast, prices of goods are expected to drop 0.3 percent, easing from a 0.6 percent fall in December, as cost of energy declined at a slower pace (-5.8 percent from -6.5 percent) while food prices continued to push the inflation up (+0.9 percent from +1.4 percent).

On a monthly basis, consumer prices are expected to fall 0.8 percent following a 0.1 percent decrease in December.

The harmonised consumer price index is estimated to be up 0.4 percent year-on-year while it is expected to drop 0.9 percent month-over-month.

German Inflation Rate Highest Since May 2015

Destatis l Joana Ferreira |
1/28/2016 1:16:32 PM