News

German Consumer Prices Unchanged in August
Consumer prices in German were unchanged from a year earlier in August 2020, after a 0.1 percent fall in the previous month and matching preliminary estimates. Services inflation slowed to 1.0 percent from 1.2 percent in July, led by growing rent prices (1.4 percent), while goods prices dropped 1.3 percent (vs -1.4 percent in July) due to a fall in energy prices (-6.3 percent vs -6.7 percent) and a slowdown in food inflation (0.7 percent vs 1.2 percent). The harmonised index of consumer prices edged down 0.1 percent from a year earlier and by 0.2 percent fall from the previous month. The government announced in July a VAT cut until the end of the year as part of a stimulus package to help Europe's largest economy recover from the coronavirus shock.
Published on 2020-09-11

Germany CPI Unchanged in August, Misses Expectations
Germany's consumer prices are expected to remain unchanged year-on-year in August 2020, following a 0.1 percent decline in the previous month and missing market expectations of a 0.1 percent rise, a preliminary estimate showed. The government announced in July a VAT cut until the end of the year as part of a stimulus package to help Europe's largest economy recover from the coronavirus shock. Services inflation should ease to 1.0 percent from 1.2 percent in July, while goods prices are likely to fall 1.3 percent (vs -1.4 percent in July) led by a decrease in energy prices (-6.3 percent vs -6.7 percent) and a slowdown in food inflation (0.7 percent vs 1.2 percent). On a monthly basis, consumer prices are expected to fall 0.1 percent, following a 0.5 percent drop in July.
Published on 2020-08-31

German Consumer Prices Fall 0.1% in July
Consumer prices in German fell 0.1 percent from a year earlier in July 2020, after a 0.9 percent rise in the previous month and matching preliminary estimates. This was the first month of deflation since April 2016, as goods prices dropped (-1.4 percent vs 0.2 percent in June), due to a faster fall in energy prices (-6.7 percent vs -6.2 percent) while food prices rose at a softer pace (1.2 percent vs 4.4 percent). Also, services inflation eased to 1.2 percent from 1.4 percent, led by growing rent prices (1.4 percent). The harmonised index of consumer prices were unchanged from a year earlier and by 0.5 percent fall from the previous month.
Published on 2020-08-13

Germany Slips into Deflation in July
Consumer prices in Germany are seen decreasing 0.1 percent from a year earlier in July 2020, the first month of deflation since April 2016 and compared to market expectations of a 0.2 percent rise. Goods prices should fall 1.4 percent (vs 0.2 percent in June) led by a decline in energy cost (-6.7 percent vs -6.2 percent) and a slowdown in food inflation (1.2 percent vs 4.4 percent). At the same time, services prices are set to increase at a slower pace (1.2 percent vs 1.4 percent). On a monthly basis, consumer prices are expected to drop 0.5 percent, the most since January and compared to forecasts of a 0.2 percent fall.
Published on 2020-07-30

Germany Inflation Rate Confirmed at 0.9% in June
The annual inflation rate in German was confirmed at 0.9 percent in June 2020, up from 0.6 percent in the previous month. Services inflation accelerated to 1.4 percent from 1.3 percent, led by growing rent prices (1.4 percent). Also, goods prices recovered (0.2 percent vs -0.4 percent in May), mainly due to a softer fall in energy prices (-6.2 percent vs -8.5 percent), while food cost rose at a softer pace (4.4 percent vs 4.5 percent). The harmonised index of consumer prices rose by 0.8 percent from a year earlier and by 0.7 percent from the previous month.
Published on 2020-07-14

German June Inflation Beats Expectations
German's consumer price inflation is expected to increase to 0.9 percent year-on-year in June 2020 from 0.6 percent in the previous month, easily beating market expectations of 0.6 percent. Services inflation should pick up to 1.4 percent from 1.3 percent, led by growing rent prices, while goods prices are seen rebounding 0.2 percent after May's 0.4 percent fall. Within goods, energy deflation will probably ease to 6.2 percent from 8.5 percent and food inflation is set to remain virtually unchanged at 4.4 percent, compared to 4.5 percent in May. On a monthly basis, consumer prices rose 0.6 percent in May, also above consensus of a 0.3 percent gain.
Published on 2020-06-29

German Inflation Rate Confirmed at Over 3-1/2-Year Low
The annual inflation rate in German was confirmed at 0.6 percent in May 2020, down from 0.9 percent in the previous month and the lowest since September 2016. Goods prices dropped 0.4 percent (vs 0.3 percent in April) mainly due to a fall in energy prices (-8.5 percent vs -5.8 percent), while food cost rose at a softer pace (4.5 percent vs 4.8 percent). Meanwhile, services inflation was unchanged at 1.3 percent as rents prices rose 1.4 percent for the second consecutive month. On a monthly basis, consumer prices edged down 0.1 percent in May, after a 0.4 percent rise in April. The harmonised index of consumer prices rose by 0.5 percent from a year earlier and was unchanged from the previous month.
Published on 2020-06-16

Germany Inflation Rate Lowest since 2016
Annual inflation rate in Germany is expected to slow to 0.6 percent in May of 2020 from 0.9 percent in the previous month, matching market expectations, preliminary estimates showed. It is the lowest inflation rate since September of 2016, due to an 8.5 percent drop in energy costs (-5.8 percent in April) while food inflation slowed (4.5 percent vs 4.8 percent). On the other hand, inflation was flat for both services (1.3 percent) and rents (1.4 percent). On a monthly basis, consumer prices decreased 0.1 percent. The harmonized index is seen rising 0.5 percent on the year and being unchanged on the month.
Published on 2020-05-28

German April Inflation Rate Revised Up to 0.9%
Germany's annual inflation was revised higher to 0.9 percent in April 2020 from a preliminary estimate of 0.8 percent, still the lowest since November 2016. Services inflation eased to 1.3 percent from 1.4 percent, with rents cost rising at a softer pace (1.4 percent vs 1.5 percent), Meanwhile, goods inflation slowed to 0.3 percent from 1.3 percent in March, mainly due to a fall in energy prices (-5.8 percent vs -0.9 percent). Conversely, food inflation accelerated to 4.8 percent from 3.7 percent. On a monthly basis, consumer prices went up 0.4 percent in April, after a 0.1 percent rise in March. The harmonised index of consumer prices rose by 0.8 percent from a year earlier and by 0.4 percent from the previous month.
Published on 2020-05-14

German Inflation Rate Slows to 3-1/2-Year Low
The annual inflation rate in Germany is expected to slow to 0.8 percent in April 2020, the lowest since November 2016 and compared to market expectations of 0.6 percent, a preliminary estimate showed. Services prices should increase at a softer 1.3 percent (vs 1.4 percent in March), with rents cost continuing to advance (1.4 percent vs 1.5 percent), while energy prices are seen falling 5.8 percent (vs -0.9 percent in March). On the contrary, food inflation is likely to jump to 4.8 percent from 3.7 percent. On a monthly basis, consumer prices are expected to gain 0.3 percent in April.
Published on 2020-04-29

German Inflation Rate Confirmed at 4-Month Low
The annual inflation rate in Germany was confirmed at 1.4 percent in March 2020, down from the previous month's 1.7 percent and the lowest since November last year. Services inflation eased (1.4 percent vs 1.6 percent) despite a slightly faster increase in rents cost (1.5 percent vs 1.4 percent), while energy prices dropped (-0.9 percent vs 2 percent). Conversely, food inflation accelerated to 3.7 percent from 3.3 percent. On a monthly basis, consumer prices edged up 0.1 percent in March, after a 0.4 percent rise in February. The harmonised index of consumer prices went up by 1.3 percent from a year earlier and by 0.1 percent rise from the previous month.
Published on 2020-04-16

German Inflation Rate Eases to 1.4% in March
The annual inflation rate in Germany is expected to slow to 1.4 percent in March 2020 from a near six-month high of 1.7 percent in the previous month and in line with market expectations, a preliminary estimate showed. Services prices should increase at a softer 1.4 percent (vs 1.6 percent in February), with rents cost continuing to advance (1.5 percent vs 1.4 percent), while energy prices are seen falling 0.9 percent (vs 2.0 percent in February). On the contrary, food inflation is likely to pick up to 3.7 percent from 3.3 percent. On a monthly basis, consumer prices are expected to gain 0.1 percent in March.
Published on 2020-03-30

German February Inflation Rate Confirmed at 1.7%
Germany's consumer price inflation was confirmed at 1.7 percent year-on-year in February 2020, unchanged from the previous month’s six-month high. Services inflation accelerated to 1.6 percent from 1.5 percent, with rent prices increasing 1.5 percent. Meanwhile, goods inflation slowed to 1.8 percent from 2.0 percent in January, mainly due to a slowdown in energy prices (2.0 percent vs 3.4 percent). On the other hand, food prices rose at a faster pace (3.3 percent vs 2.3 percent). On a monthly basis, consumer prices advanced 0.4 percent, recovering from a 0.6 percent drop in January. The harmonised index of consumer prices went up by 1.7 percent from a year earlier and by 0.6 percent from the previous month.
Published on 2020-03-13

German Inflation Holds Steady at 6-Month High
The inflation rate in Germany is expected to stay at 1.7 percent year-on-year in February 2020, unchanged from the previous month's six-month high and in line with market expectations, a preliminary estimate showed. Services inflation is seen accelerating to 1.6 percent from 1.5 percent, with rent prices increasing 1.4 percent. Meanwhile, goods inflation is set to ease to 1.8 percent from 2.0 percent mainly due to a slowdown in energy prices (2.0 percent vs 3.4 percent). Food costs will likely rise at a faster pace (3.3 percent vs 2.3 percent). On a monthly basis, consumer prices are expected to advance 0.4 percent, recovering from a 0.6 percent drop in January and beating market forecasts of 0.3 percent.
Published on 2020-02-28

German Inflation Rate Confirmed at 6-Month High
Germany's consumer price inflation was confirmed at 1.7 percent year-on-year in January 2020, the highest level since July last year. Goods inflation accelerated to 2.0 percent from 1.2 percent in December on the back of both energy (3.4 percent vs -0.1 percent) and food (2.3 percent vs 2.1 percent). Cost increases were also recorded for newspapers and periodicals (5.3 percent) and tobacco products (4.4 percent). Services inflation eased to 1.5 percent from 1.8 percent, with rent prices increasing 1.4 percent. Higher prices for the services of car repair shops (4.7 percent) and social facilities (4.3 percent) were also seen. The harmonised index of consumer prices went up 1.6 percent from a year earlier, but fell 0.8 percent on the previous month.
Published on 2020-02-13

German Inflation Hits 6-Month High in January
Germany's consumer price inflation is expected to pick up to 1.7 percent year-on-year in January 2020, the highest since last July and in line with market expectations, a preliminary estimate showed. Goods cost should rise at a faster pace (2.0 percent vs 1.2 percent) on the back of both energy (3.4 percent vs -0.1 percent) and food (2.3 percent vs 2.1 percent). On the other hand, services inflation is likely to slow to 1.5 percent from 1.8 percent, with rents prices increasing 1.4 percent, the same as in December. On a monthly basis, consumer prices are seen falling 0.6 percent, reversing a 0.5 percent gain in the previous period. The harmonised index of consumer prices is expected to increase 1.6 percent year-on-year, remaining below the ECB's target of just below 2.0 percent for the ninth month in a row.
Published on 2020-01-30

German December Inflation Confirmed at 5-Month High
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.
Published on 2020-01-16

German Inflation Rate Climbs to 5-Month High
Germany's consumer price inflation is expected to pick up to 1.5 percent year-on-year in December 2019, the highest level since July and slightly above market expectations of 1.4 percent, a preliminary estimate showed. Goods inflation is seen accelerating to 1.2 percent from 0.1 percent in November on the back of a further increase in food cost (2.1 percent vs 1.8 percent) and an easing energy deflation (-0.1 percent vs -3.7 percent). Services inflation is likely to hold steady at 1.8 percent, with rent prices rising 1.4 percent. The harmonised index of consumer prices is set to increase 1.5 percent from a year earlier and 0.6 percent on the previous month. On an annual average, the inflation rate is expected to stand at 1.4 percent in 2019.
Published on 2020-01-03

German Inflation Rate Confirmed at 1-1/2-Year Low
Germany's consumer price inflation was confirmed at 1.1 percent year-on-year in November 2019, unchanged from the previous month and the lowest level since February 2018. Inflation remained below the ECB's target for the seventh month in a row, as energy deflation deepened.
Published on 2019-12-12

German Inflation Rate Unchanged at 1-1/2-Year Low
Germany's consumer price inflation is expected to hold steady at 1.1 percent year-on-year in November 2019, the lowest level since February 2018 and below market expectations of 1.3 percent, a preliminary estimate showed. Inflation should also remain below the ECB's target level for the seventh month in a row, as energy deflation is likely to deepen further, while services and food prices are set to increase at a faster pace.
Published on 2019-11-28