German Inflation Rate Unexpectedly Rises To 1.6% In June


German consumer prices are expected to increase by 1.6 percent year-on-year in June 2017, following a 1.5 percent rise in the previous month and beating market consensus of a 1.4 percent gain. Cost of services rose at a faster pace while goods inflation slowed, as energy prices showed no growth from a year earlier.

Year-on-year, prices of services are expected to grow by 1.7 percent, following a 1.2 percent gain the previous month; and cost of rents is expected to advance 1.8 percent, the same as in May. Meanwhile, prices of goods are expected to advance by 1.5 percent, compared to 1.8 percent increase in May, as cost of energy is expected to remain flat from the previous year after rising by 2 percent in May; while food prices are expected to increase by 2.8 percent, faster than a 2.4 percent gain in the previous month.

Compared with May 2017, consumer prices are expected to increase by 0.2 percent, after falling by 0.2 percent in the previous month and above market expectations of a flat reading.

The harmonised index of consumer prices is expected to rise by 1.5 percent from the previous year; and by 0.2 percent from the previous month.

Destatis l Joana Ferreira | joana.ferreira@tradingeconomics.com
6/29/2017 12:11:53 PM