German Inflation Rate Slows Below Forecasts

Germany's annual inflation rate is expected to ease to 2.3 percent in November 2018 from a ten-year high of 2.5 percent in the previous month and slightly below market expectations of 2.4 percent. Prices of services and food are set to rise at a slower pace while energy inflation should pick up.

Services prices are likely to increase at a slower 1.5 percent in November, following a 1.8 percent gain in the previous month, with cost of rents advancing by 1.5 percent, compared with 1.6 percent in October. Also, goods inflation is expected to remain unchanged at 3.2 percent in November, as a slowdown in food prices (1.4 percent vs 1.9 percent) was offset by a pick up in energy inflation (9.3 percent vs 8.9 percent).

On a monthly basis, consumer prices are set to rise 0.1 percent in November, after growing 0.2 percent in October and slightly missing consensus of 0.2 percent.

The harmonised index of consumer prices is expected to rise by 2.2 percent from the previous year; and by 0.1 percent month-over-month.

German Inflation Rate Slows Below Forecasts

Destatis | Joana Ferreira |
11/29/2018 1:09:31 PM