German Consumer Prices Unchanged in February

Consumer prices in Germany are expected to remain unchanged in February from a year earlier following a 0.5 percent growth in January of 2016 while missing market expectations of 0.1 percent growth. It was the lowest level since September last year, as a sharp drop in cost of energy was enough to offset an increase in prices of rents and food.

Year-on-year, prices of goods are expected to drop 1.1 percent, compared to a 0.3 percent fall in January, as cost of energy declined at a faster pace (-8.5 percent from -5.8 percent) while food prices continued to push the inflation up (+0.8 percent from +0.9 percent). In contrast, prices of services are expected to grow 0.9 percent, easing from a 1.2 percent growth in the previous month, boosted by a 1.1 percent increase in cost of rents.

On a monthly basis, consumer prices are expected to rise 0.4 percent following a 0.8 percent drop in January.

The harmonised consumer price index is estimated to be down 0.2 percent year-on-year while it is expected to rise 0.4 percent month-over-month.

German Consumer Prices Unchanged in February

Destatis | Joana Ferreira |
2/26/2016 1:14:47 PM