Saxony CPI
January: -0.5% m/m, +1.9% y/y
December: +1.2% m/m, +1.8% 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 eastern German state of
Saxony fell 0.5% in January, but still boosted the annual inflation rate
to +1.9% from +1.8% due to base effects, the state statistics office
said Thursday.
The monthly result is below the median forecast of -0.4% for
pan-German CPI in an MNI survey of analysts.
Downward pressure on monthly inflation came from lower package
holiday vacation prices, which helped to push leisure costs 4.2% lower
than in November. Clothing and shoe prices were also lower, slipping
3.7% on the month
Energy costs continued to have an upward effect on inflation.
Excluding household energy and motor fuel prices, which rose 1.8% and
1.1% on the month and 7.0% and 10.8% on the year, respectively, CPI fell
0.8% m/m and was only 1.2% higher on the year.
Excluding energy and seasonal foodstuffs, core inflation was -0.8%
m/m and +1.0% y/y.
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.”
For detailed information see data table on MNI MainWire.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: M$G$$$,MAGDS$,M$X$$$,M$XDS$,MT$$$$]
