Germany Falls Into Deflation

Consumer prices in Germany are expected to decrease 0.3 percent year-on-year in January. It is the first time since September of 2009 the inflation rate turns negative due to a drop in energy cost.

According to preliminary estimates, energy prices are likely to fall 9 percent, compared to a 6.6 percent drop in December. Food cost is estimated to decline 1.3 percent after decreasing by 1.2 percent in the previous month. In contrast, prices of services are expected to increase 1.2 percent. 

Excluding food and energy, consumer prices are expected to increase by 1.1 percent year on year. 

On a monthly basis, consumer prices are estimated to decrease 1 percent. 

The harmonised consumer price index for Germany is expected to decline by 0.5 percent in January compared with the same month a year earlier. From the previous month, prices are expected to decrease by 1.3 percent.

Germany Falls Into Deflation

Destatis | Joana Taborda |
1/29/2015 1:18:13 PM