German Inflation Rate Rises to 4-Month High in August


German consumer prices are expected to increase by 1.8 percent year-on-year in August 2017, in line with market expectations and following a 1.7 percent gain in the previous month. It was the highest inflation rate since April, due to rising prices of energy and food.

Year-on-year, prices of goods are expected to advance by 2 percent, compared to 1.7 percent gain in July. Cost of energy is expected to increase by 2.3 percent from the previous year after an increase of 0.9 percent in July and food prices are expected to increase by 3 percent, faster than a 2.7 percent gain in the previous month. Meanwhile, prices of services are expected to grow by 1.6 percent (1.7 percent in July); and cost of rents is expected to advance 1.7 percent (1.8 percent in July).

Compared with July 2017, consumer prices are expected to increase by 0.1 percent after rising by 0.4 percent in the previous month and matching market expectations.

The harmonised index of consumer prices is expected to rise by 1.8 percent from the previous year, and by 0.2 percent from the previous month.

Destatis | Joana Ferreira | joana.ferreira@tradingeconomics.com
8/30/2017 12:06:37 PM