Baden-Wuerttemberg CPI

November: flat m/m, +2.5% y/y
October: +0.3% m/m, +2.8% y/y
—
Pan-German CPI

MNI median forecast: flat m/m, +2.4% y/y
MNI forecast range: -0.1% m/m to +0.1% m/m

October: flat m/m, +2.5% y/y
—

BERLIN (MNI) – Consumer prices in the western German state of
Baden-Wuerttemberg were overall unchanged in November, as costlier food,
heating oil and durable goods offset cheaper motor fuel, leisure and
hotel fees, the state statistics office said Monday.

On the year, prices were up 2.5% after +2.8% in October.

Similar to other reporting states, downward pressure on monthly
consumer prices in Baden-Wuerttemberg came from motor fuel prices, which
fell 0.6% and cut transport prices by 0.3%. Hotel and leisure prices
fell 1.2% and 0.8%, respectively.

Conversely, food prices were up 0.5% on the month, with seasonal
foodstuffs alone jumping 2.6%. Heating oil was 5.0% higher compared to
October.

Annual price trends continued to be fueled by energy, led by
heating oil (+29.5%), household energy (+11.4%) and motor fuel (+11.1%).
On the other end of the spectrum, seasonal food prices were down 5.3% on
the year, while communication was 2.5% cheaper.

Inflation pressures in Germany are expected to ease over the coming
months on the back of a deteriorating domestic and global economic
outlook. Growth of input prices has already slowed in recent months and
business expectations for selling prices have been falling.

Finance Minister Wolfgang Schaeuble last week cautioned that
Germany’s growth outlook “is no longer as favorable as it appeared half
a year ago. That is the big worry.”

The Finance Ministry forecast last week that the economic upswing
will likely slow markedly in the fourth quarter. Due to moderating
global growth, inflation pressures will likely ease as well, it said.

The Bundesbank said last week that the economy is set to run into
difficult cyclical headwinds in the coming months, yet there are few
signs to suggest the economy is heading for a recession.

The central bank forecast a slowdown in economic growth for the
coming year to 0.5% to 1.0%, which it said would result in a shift from
external to domestic growth forces.

For detailed information see data table on MNI MainWire.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

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