German Inflation Rate Drops to 1-1/2-Year Low

The inflation rate in Germany is expected to ease to 1.2 percent year-on-year in September 2019 from 1.4 percent in the previous month, missing market expectations of 1.3 percent, a preliminary estimate showed. That would be the lowest inflation rate since February 2018.

Goods prices are set to increase 0.6 percent in September, easing from a 1.3 percent rise in the previous month, mainly due to a fall in energy prices (-1.1 percent vs 0.6 percent) and a slowdown in food inflation (1.3 percent vs 2.7 percent).

Meanwhile, services inflation is likely to pick up to 1.8 percent from 1.6 percent, with rents prices advancing 1.4 percent (vs 1.3 percent in August).

On a monthly basis, consumer prices are set to remain unchanged, following a 0.2 percent decline in August and compared to market forecasts of a 0.1 percent gain.

The harmonised index of consumer prices is expected to rise 0.9 percent from the previous year (vs 1 percent in August); and fall 0.1 percent month-over-month (vs -0.1 percent in August).

 German Inflation Rate Drops to 1-1/2-Year Low

Destatis | Joana Ferreira |
9/30/2019 12:13:11 PM