German Inflation Rate Climbs to 10-Year High

Germany's annual inflation rate is expected to increase to 2.5 percent in October 2018 from 2.3 percent in the previous month and above market expectations of 2.4 percent. That would be the highest inflation since September 2008 as prices of services and energy are set to rise at a faster pace.

Services inflation is likely to pick up to 1.8 percent in October from 1.5 percent in the previous month, with cost of rents advancing by 1.6 percent, compared with 1.5 percent in September. Also, prices of goods are expected to advance by 3.2 percent in October, following a 3.1 percent gain in September, boosted by prices of both energy (8.9 percent vs 7.7 percent) and food (1.9 percent vs 2.8 percent).

On a monthly basis, consumer prices are set to rise 0.2 percent in October, after growing 0.4 percent in September and beating market consensus of 0.1 percent.

The harmonised index of consumer prices is expected to rise by 2.4 percent from the previous year; and by 0.1 percent month-over-month.

German Inflation Rate Climbs to 10-Year High

Destatis | Joana Ferreira |
10/30/2018 1:13:23 PM