Hesse CPI
January: -0.3% m/m +1.9% y/y
December: +0.5% m/m, +1.7% y/y
—
Pan-German CPI
December: +0.7% m/m, +2.1% y/y
—
BERLIN (MNI)- Consumer prices in the western German state of Hesse
fell 0.3% in January, which still lifted the annual inflation rate to
+1.9% from +1.7%, the state statistics office said Friday.
Downward pressure on monthly consumer prices in Hesse came from
leisure prices, which fell 4.5% on the month following the Christmas
season, as well as education prices, which slipped 4.5%, and restaurant
and vacation lodgings, which were 3.3% cheaper.
Fueled by strong gains in both heating oil prices (+5.0%) and gas
(+1.0%), household energy prices were up 1.3% and 6.2% on the month and
year, respectively. Motor fuel was 4.5% higher m/m, resulting in an
annual rate of +5.3%.
Excluding the energy components of the index, core CPI fell 0.6%
between December and January, but was up 1.5% on the year.
Inflation pressures in Germany are expected to continue easing over
the coming months on the back of slowing domestic and global economic
growth as well as falling energy prices.
Earlier this month, the German government predicted annual
inflation in Germany would ease to 1.8% this year.
The German Bundesbank last month also forecast an annual inflation
rate of 1.8% in 2012, pointing to easing domestic price pressure and
decelerating global commodity prices. For 2013, the central bank
projected inflation would slow further to 1.5%.
“Risks to the inflation outlook primarily stem from oil prices and
exchange rates,” the Bundesbank said. “Given the projected global
economic developments, it is quite possible that the oil prices will not
ease significantly but remain at current levels.” A more pronounced
global slowdown, on the other hand, could exert downward pressure on
commodity prices, it said.
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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