German Inflation Rate Rises to 15-Month High

The German consumer price inflation is expected to increase to 2.2 percent year-on-year in May 2018 from 1.6 percent in the previous month and above market expectations of 2 percent. It is the highest rate since February 2017, as prices of services, food and energy are set to rise at a faster pace.

Services price inflation is likely to pick up to 1.9 percent in May from 1.5 percent in the previous month, with cost of rents advancing by 1.6 percent, the same pace as in April. In addition, prices of goods are expected to advance by 2.5 percent, compared with 1.6 percent in April, as inflation is set to increase for both food (3.5 percent vs 3.4 percent) and energy (5.2 percent vs 1.3 percent).

On a monthly basis, consumer prices are set to rise 0.5 percent in May, after showing no growth in April, and beating market expectations of a 0.3 percent gain.

The harmonised index of consumer prices is expected to rise by 2.2 percent from the previous year; and by 0.6 percent from the previous month.

German Inflation Rate Rises to 15-Month High

Destatis | Joana Ferreira |
5/30/2018 12:21:13 PM