Germany Inflation Rate at 2-Year High of 0.8% in October


Consumer prices in Germany are expected to increase by 0.8 percent on the year in October 2016, following a 0.7 percent growth in the previous month and in line with market expectations. Inflation hit its highest level since October 2014, as cost of services continued to rise while energy prices fell at a slower pace. On a monthly basis, consumer prices went up 0.2 percent.

Year-on-year, prices of services are expected to increase 1.3 percent, the same pace as in September, as cost of rents is expected to go up 1.4 percent. Also, prices of goods are expected to rise by 0.4 percent, compared to a 0.1 percent fall in the previous month, as cost of energy fell 1.4 percent (from -3.6 percent in September) while food prices remained unchanged (from +0.4 percent).

On a monthly basis, consumer prices are expected to gain 0.2 percent, following a 0.1 percent growth in September.

The harmonised index of consumer prices is expected to increase by 0.7 percent from the previous year. Compared with September 2016, it is expected to rise 0.2 percent. 

Germany Inflation Rate at 2-Year High of 0.8% in October


Destatis l Yekaterina Guchshina | yekaterina@tradingeconomics.com
10/28/2016 12:09:05 PM