German Inflation Rate Slows To 6-Month Low In May


German consumer prices are expected to increase by 1.5 percent year-on-year in May 2017, easing from a 2 percent rise in the previous month and missing market consensus of a 1.6 percent gain. It was the lowest inflation rate since November last year, as prices rose at a slower pace for energy and services.

Year-on-year, prices of goods are expected to advance 1.8 percent, compared to 2.2 percent growth in the previous month, as cost of energy is expected to rise by 2 percent (from5.1 percent in April) and food prices by 2.4 percent (from 1.8 percent). Prices of services are expected to grow by 1.2 percent, following a 1.7 percent gain the previous month; and cost of rents is expected to advance 1.8 percent after rising by 1.7 percent in April.

Compared with April 2017, consumer prices are expected to decrease by 0.2 percent, after showing no growth in the previous month and worse than market expectations of a 0.1 percent fall.

The harmonised index of consumer prices is expected to rise by 1.4 percent from the previous year; and drop by 0.2 percent from the previous month.

Destatis l Joana Ferreira | joana.ferreira@tradingeconomics.com
5/30/2017 12:07:10 PM