German July Inflation Rate Weaker than Expected

Germany's annual inflation rate is expected to ease further to 2 percent in July 2018 from the previous month's 2.1 percent and slightly below market expectations of 2.1 percent. Food inflation is likely to slow while prices of services and energy are set to rise at a faster pace.

Prices of goods are expected to advance by 2.4 percent in July, compared with 2.8 percent in June, as food inflation is set to slow to 2.6 percent from 3.4 percent. Energy cost is likely to rise at a slightly faster pace (6.6 percent vs 6.4 percent). Meanwhile, services inflation is likely to pick up to 1.6 percent in July from 1.5 percent in the previous month, with cost of rents advancing by 1.6 percent, the same pace as in June.

On a monthly basis, consumer prices are set to rise 0.3 percent in July, after growing 0.1 percent in June and also below market consensus of 0.4 percent.

The harmonised index of consumer prices is expected to rise by 2.1 percent from the previous year; and by 0.4 percent from the previous month.

German July Inflation Rate Weaker than Expected

Destatis | Joana Ferreira |
7/30/2018 12:09:17 PM