Baden-Wuerttemberg CPI
January: -0.4% m/m, +2.1% y/y
December: +0.9% m/m, +1.9% y/y
—
Pan-German CPI
MNI median forecast: -0.4% m/m, +2.0% y/y
MNI forecast range: -0.6% to -0.2% m/m
December: +1.0% m/m, +1.7% y/y
—
BERLIN (MNI) – Consumer prices in the western German state of
Baden-Wuerttemberg fell by 0.4% in January, lifting the annual rate to
2.1% from +1.9% in December, the state statistics office said Thursday.
The monthly rise was in line with the median forecast for
pan-German CPI in a MNI survey of analysts. Earlier today, North
Rhine-Westphalia, Hesse, Saxony and Brandenburg all posted monthly CPI
declines of 0.5%, while Bavaria saw its consumer prices falling only
0.3%.
Prices for hotel and restaurant services in Baden-Wuerttemberg fell
4.3% on the month, clothing and shoes were 3.5% cheaper, and prices for
leisure time, entertainment and cultural services fell 4.4%.
Upward pressure came from food (+0.8%), with seasonal produce
spiking 3.5%. On the energy side, heating oil climbed 4.8%, household
energy rose 3.4% and motor fuel was up 2.0%.
In an annual comparison, food prices rose 2.5% and seasonal produce
jumped 9.5%. Heating oil rose 25.7%, motor fuel 9.3% and household
energy 7.9%.
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 of 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.”
For detailed information see data table on MNI MainWire.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: M$G$$$,M$X$$$,MAGDS$,M$XDS$,MT$$$$]
