German Inflation Rate Holds Steady at 2%

Germany's annual inflation rate is expected to remain unchanged at 2 percent in August 2018, in line with market expectations, as prices of services and food are set to rise at a softer pace while energy inflation is likely to pick up further.

Services inflation is likely to ease to 1.4 percent in August from 1.6 percent in the previous month, with cost of rents advancing by 1.6 percent, the same pace as in July. Meanwhile, prices of goods are expected to advance by 2.7 percent in August, compared with 2.4 percent in July, as energy inflation is set to increase to 6.9 percent from 6.6 percent. Food cost is likely to rise at a slightly softer pace (2.5 percent vs 2.6 percent).

On a monthly basis, consumer prices are set to edge up 0.1 percent in August, after growing 0.3 percent in July and also matching market consensus.

The harmonised index of consumer prices is expected to rise by 1.9 percent from the previous year; and to remain unchanged from the previous month.

German Inflation Rate Holds Steady at 2%

Destatis | Joana Ferreira |
8/30/2018 12:12:20 PM