Germany's consumer price inflation was confirmed at 1.5 percent year-on-year in December 2019, the highest level since July, as goods prices rose 1.2 percent (vs 0.1 percent in November) mainly due to a faster increase in food prices (2.1 percent vs 1.8 percent) and a softer fall in energy prices (-0.1 percent vs -3.7 percent). Meanwhile, services inflation stood at 1.8 percent in December, mainly boosted by net rents exclusive of heating expenses (1.5 percent). Considering 2019 full year, the inflation rate averaged 1.4 percent, compared to 1.8 percent in 2018 and below the ECB's target of below, but close to, 2 percent. Inflation Rate in Germany averaged 2.37 percent from 1950 until 2019, reaching an all time high of 11.54 percent in October of 1951 and a record low of -7.62 percent in June of 1950. source: Federal Statistical Office
Inflation Rate in Germany is expected to be 1.40 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Germany to stand at 1.20 in 12 months time. In the long-term, the Germany Inflation Rate is projected to trend around 1.40 percent in 2020, according to our econometric models.
Germany Inflation Rate
In Germany, the most important categories in the consumer price index are Housing, water, electricity, gas & other fuels (32 percent of the total weight), Transport (13 percent), Recreation, entertainment & culture (11 percent) and Food & non-alcoholic beverages (10 percent). The index also includes Miscellaneous goods & services (7 percent), Furniture, lighting equipment, appliances & other household equipment (5 percent), Restaurant & accommodation services (5 percent), Health (5 percent) and Clothing & footwear (5 percent). The remaining 7 percent of the index is composed by Alcoholic beverages & tobacco, Communication and Education.