German December Inflation Rate Stronger than Expected

German consumer prices are expected to increase by 1.7 percent year-on-year in December 2017, following a 1.8 percent gain in the previous month and beating market consensus of 1.5 percent. Cost of energy and food rose at a softer pace while services inflation picked up.
Destatis l Joana Ferreira | joana.ferreira@tradingeconomics.com 12/29/2017 1:09:14 PM
Year-on-year, prices of goods are expected to advance by 1.8 percent, compared to a 2.1 percent gain in the previous month, as cost of energy is set to increase by 1.3 percent from the previous year after an increase of 3.7 percent in November; and food inflation is expected to ease to 3 percent from 3.2 percent in the previous month. Meanwhile, prices of services are expected to grow by 1.6 percent, following a 1.5 percent gain in the previous month, with cost of rents advancing by 1.7 percent, the same as in November.

On a monthly basis, consumer prices are expected to increase by 0.6 percent after a 0.3 percent gain in November, also beating forecasts of 0.5 percent.

The harmonised index of consumer prices is expected to rise by 1.6 percent from the previous year and by 0.8 percent from the previous month.

German December Inflation Rate Stronger than Expected