German Inflation Steady at 0.4% in August


Consumer prices in Germany are expected to increase by 0.4 percent on the year in August 2016, at the same pace as in the previous month while below market expectations of 0.5 percent. Inflation stays at the highest level since January, mainly boosted by rise in prices of food and services, and cost of energy fell less than in July. On a monthly basis, consumer prices were flat.

Year-on-year, prices of services are expected to grow 1.3 percent, compared to 1.4 percent in July, as cost of rents is expected to go up 1.2 percent, and food prices to increase 0.9 percent (from +1.1 percent). In contrast, prices of goods are expected to drop 0.6 percent, compared to a 0.7 percent fall in July, as cost of energy fell 5.9 percent  (from -7.0 percent in the previous month). 

On a monthly basis, consumer prices are expected to be flat, following a 0.3 percent gain in July and below market expectations of 0.1 percent increase.

The harmonised index of consumer prices is expected to increase by 0.3 percent from the previous year. Compared with July 2016, it is expected to fall by 0.1 percent. 

German Inflation Steady at 0.4% in August


Destatis | Yekaterina Guchshina | yekaterina@tradingeconomics.com
8/30/2016 1:12:50 PM