German Inflation Rate Falls to 8-Month Low

Germany's annual inflation rate is expected to ease to an eight-month low of 1.7 percent in December 2018 from 2.3 percent in the previous month and below market expectations of 1.9 percent. Prices of energy and food are set to rise at a slower pace while service inflation should be flat.

Goods inflation is expected to drop to 2 percent in December from 3.2 percent in November, due to a slowdown in energy (4.8 percent vs 9.3 percent) and food prices (1 percent vs 1.4 percent). Meanwhile, services cost is likely to increase 1.5 percent in December, the same pace as in the previous month, with rents prices advancing by 1.5 percent, also the same as in November.

On a monthly basis, consumer prices are set to advance 0.1 percent in December, also missing market consensus of a 0.3 percent gain.

The harmonised index of consumer prices is expected to rise by 1.7 percent from the previous year; and by 0.3 percent month-over-month.

 German Inflation Rate Falls to 8-Month Low

Destatis | Joana Ferreira |
12/28/2018 1:10:56 PM