German Inflation Rate Eases to 15-Month Low

The German consumer price inflation is expected to slow to 1.4 percent year-on-year in February 2018 from 1.6 percent in the previous month and below market consensus of 1.5 percent. It was the lowest rate since November 2016.

Prices of goods are expected to advance by 1 percent year-on-year, compared to 1.5 percent gain in the previous month, as inflation is set to slow for both food (1.1 percent vs 3.1 percent) and energy (0.1 percent vs 0.9 percent). Meanwhile, services price inflation is likely to remain unchanged at 1.6 percent for the third straight month, with cost of rents advancing by 1.6 percent, compared with 1.7 percent in January.

On a monthly basis, consumer prices are set to increase by 0.5 percent, rebounding from a 0.7 percent drop in January and matching market expectations.

The harmonised index of consumer prices is expected to rise by 1.2 percent from the previous year and by 0.5 percent from the previous month.

German Inflation Rate Eases to 15-Month Low

Destatis l Joana Ferreira |
2/27/2018 1:12:12 PM