German Inflation Rate Stronger Than Expected in July


German consumer prices are expected to increase by 1.7 percent year-on-year in July 2017, beating market consensus of 1.5 percent and following a 1.6 percent gain in the previous month. It was the highest inflation rate since April, mainly boosted by rising energy prices.

Year-on-year, prices of goods are expected to advance by 1.7 percent, compared to 1.5 percent gain in June, as cost of energy is expected to increase by 0.9 percent from the previous year after showing no growth in June, while food prices are expected to increase by 2.7 percent, slower than a 2.8 percent gain in the previous month. Prices of services are expected to grow by 1.7 percent, the same pace as in the previous month; and cost of rents is expected to advance 1.8 percent, the same as in June.

Compared with June 2017, consumer prices are expected to increase by 0.4 percent, after rising by 0.2 percent in the previous month and above market expectations of 0.2 percent.

The harmonised index of consumer prices is expected to rise by 1.5 percent from the previous year; and by 0.4 percent from the previous month.

Destatis l Joana Ferreira | joana.ferreira@tradingeconomics.com
7/28/2017 10:31:09 AM