Final HICP
June: flat m/m +0.8% y/y
May: +0.1% m/m, +1.2% y/y
Final CPI
June: +0.1% m/m, +0.9% y/y
May: +0.1% m/m, +1.2% y/y
—
BERLIN (MNI) – Germany’s harmonized annual inflation rate slowed to
0.8% in June from 1.2% in May, the Federal Statistical Office said
Friday, confirming its flash estimate.
The stats office also confirmed the flash estimate of a flat
reading of monthly inflation.
Germany’s national CPI was unrevised at +0.1% m/m and +0.9% y/y
after +0.1% and +1.2%, respectively, in May.
Due to the upcoming start of the holiday season, prices for
packaged holiday tours rose 0.7% compared to May, hotel and restaurant
services were also 0.7% more expensive.
Energy prices were tame in June. Electricity and gas prices both
remained flat, while prices for light heating oil fell 0.1% and for
motor fuel 0.4%.
Food prices climbed 0.2%, while prices for clothing and shoes were
down 1.2%.
In an annual comparison, prices for light heating oil were up
23.5%, motor fuel up 8.5% and electricity up 2.8%, while gas prices
dropped 8.9%.
Food prices climbed 1.2%, clothing and shoes were also 1.2% more
expensive than a year ago. Prices for packaged holiday tours fell 1.5%,
while prices for hotel and restaurant services rose 1.1%.
Core inflation also remained tame in June. CPI ex-energy was up
0.1% on the month and 0.8% on the year.
Headline inflation is expected to remain low for the coming months,
given the huge spare capacity in the German economy. Wage growth in all
likelihood will remain subdued. Trade unions so far this year have
settled for moderate wage deals. Due to still subdued domestic demand,
pricing power of businesses remains low.
The Bundesbank recently forecast German average inflation of only
+1.2% this year. The central bank said it sees risks to price stability
pointed downward in the short term.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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