Germany Inflation

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Germany: Consumer prices record steepest drop in over five years

January 29, 2015

Consumer prices dropped 1.0% over the previous month in January, according to data released by the Federal Statistics Office (Destatis) on 29 January. The result came in significantly below December’s flat reading.

In annual terms, consumer prices dropped 0.3% in January, which represented the steepest decline since July 2009 and contrasted December’s 0.2% price increase. Annual average inflation inched down from December 0.9% to 0.8% in January.

Meanwhile, harmonized consumer prices decreased 0.5% in annual terms, contrasting December’s mild 0.1% increase. Annual average HICP inflation also declined in January, edging down from December’s 0.8% to 0.6%.

The Central Bank expects inflation of 1.1% in 2015, before increasing to 1.8% in 2016. FocusEconomics panelists expect inflation to average 0.8% in 2015, which is down 0.2 percentage points from the previous month’s forecast. For 2016, panelists expect inflation to increase to 1.6%.


Author: Teresa Kersting, Economist

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Germany Inflation Chart


Germany Inflation January 2015

Note: Month-on-month and year-on-year changes of consumer price index in %.
Source: Federal Statistics Office (Destatis) and FocusEconomics calculations.


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