German Inflation Rate Falls More than Expected

The inflation rate in Germany is expected to ease to 1.4 percent year-on-year in August 2019 from a three-month high of 1.7 percent in the previous month, missing market expectations of 1.5 percent, a preliminary estimate showed.

Goods prices are set to increase 1.3 percent in August, easing from a 1.8 percent rise in the previous month, mainly due to a slowdown in energy inflation (0.6 percent vs 2.4 percent). Meanwhile, food prices should advance 2.7 percent, faster than 2.1 percent in July.

Services inflation is likely to pick up to 1.6 percent from 1.5 percent, with rents prices advancing 1.3 percent (vs 1.4 percent in July).

On a monthly basis, consumer prices are set to decline 0.2 percent in August, following a 0.5 percent advance in July and compared to market forecasts of a 0.1 percent fall.

The harmonised index of consumer prices is expected to rise 1 percent from the previous year (vs 1.1 percent in July); and fall 0.1 percent month-over-month (vs 0.4 percent in July).

German Inflation Rate Falls More than Expected

Destatis | Joana Ferreira |
8/29/2019 12:11:03 PM