Flash Jan HICP: -0.5% m/m, +2.0% y/y
MNI median forecast: -0.3% m/m, +2.1% y/y
MNI forecast range: -0.5% to -0.1% m/m
Final Dec HICP: +1.2% m/m, +1.9% y/y
————–
Flash Jan CPI: -0.5% m/m, +1.9% y/y
MNI median forecast: -0.4% m/m, +2.0% y/y
MNI forecast range: -0.6% to -0.2% m/m
Final Dec CPI: +1.0% m/m, +1.7% y/y
————–
BERLIN (MNI) – German consumer prices in January fell 0.5% both in
national terms and in EU-harmonized terms, with annual rates
accelerating to +1.9% for CPI and +2.0% for HICP, the Federal
Statistical Office (FSO) estimated Thursday.
The median forecasts in a MNI survey of analysts were for a 0.4%
monthly drop of CPI and a 0.3% decline of HICP.
As usual, the Federal Statistics Office provided few details on
price developments with the flash release. January inflation was likely
driven mainly by strong price hikes for light heating oil, motor fuel,
fruit and vegetables, it said. Moreover, the price hikes for electricity
announced some time ago by utilities have now come into force, the stats
office added.
The final CPI and HICP numbers are to be released on February 11.
Analysts expect that the remaining spare capacity in the economy
will keep underlying price pressures down.
The German government last week forecast average inflation of 1.8%
this year, with core inflation projected at 1.3%. It also expects no
strong increase in inflation over the coming years, Economics Minister
Rainer Bruederle said.
Bundesbank President Axel Weber said last week that “over the
medium term, inflation rates (HICP) under 2% are still to be expected in
the Eurozone, just as in Germany.”
While he argued that inflationary risks are still balanced, Weber
still cautioned that “upward risks could increase.”
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: M$G$$$,M$X$$$,MAGDS$,M$XDS$,MT$$$$]
