German January Inflation Rate Weaker than Expected

German consumer price inflation is expected to ease to a three-month low of 1.6 percent year-on-year in January 2018 from 1.7 percent in the previous month and below market consensus of 1.7 percent.

Year-on-year, prices of goods are expected to advance by 1.5 percent, compared to a 1.8 percent gain in the previous month, as cost of energy is set to rise by 0.9 percent from the previous year after an increase of 1.3 percent in December. Food prices are expected to grow by 3.1 percent, compared to 3 percent in the previous month. Meanwhile, services price inflation is likely to remain unchanged at 1.6 percent, with cost of rents advancing by 1.7 percent, the same as in December.

On a monthly basis, consumer prices are expected to fall by 0.7 percent after a 0.6 percent gain in December, and below forecasts of a 0.6 percent drop.

The harmonised index of consumer prices is expected to rise by 1.4 percent from the previous year and decline by 1 percent from the previous month.

German January Inflation Rate Weaker than Expected

Destatis l Joana Ferreira |
1/30/2018 1:10:28 PM