German March Inflation Rate Weaker than Expected

The German consumer price inflation is expected to pick up to 1.6 percent year-on-year in March 2018 from a 15-month low of 1.4 percent in the previous month, but below market consensus of 1.7 percent. Prices should rise at a faster pace for services, energy and food.

Services price inflation is likely to increase to 1.8 percent year-on-year in March from 1.6 percent in the previous month, with cost of rents advancing by 1.6 percent, the same pace as in February. In addition, prices of goods are expected to advance by 1.4 percent, compared to 1 percent gain in the previous month, as inflation is set to pick up for both energy (0.5 percent vs 0.1 percent) and food (2.9 percent vs 1.1 percent).

On a monthly basis, consumer prices are set to increase by 0.4 percent, after a 0.5 percent advance in February and slightly below market expectations of 0.5 percent.

The harmonised index of consumer prices is expected to rise by 1.5 percent from the previous year and by 0.4 percent from the previous month.

German March Inflation Rate Weaker than Expected

Destatis | Joana Ferreira |
3/29/2018 12:09:50 PM