Germany Inflation December 2019


Germany: Harmonized inflation rises in December

January 16, 2020

Harmonized consumer prices in Germany rose 0.6% month-on-month in December, contrasting the 0.8% drop in November. The rise in prices was driven by another robust rice in food and non-alcoholic beverages prices while transport became pricier too despite cheaper fuels and lubricants. Furthermore, a significant rise in recreation and culture prices also drove the headline figure.

Harmonized inflation, meanwhile, edged up to 1.5% in December from 1.2% in November, marking a six-month high. On the other hand, annual average harmonized inflation was stable in December at November’s print, meaning 2019 average harmonized inflation came in at 1.4% in 2019. As such, harmonized inflation moderated notably from 2018’s 1.9% amid a tough year for the German economy, which suffered from a more hostile external environment and structural challenges in the industrial sector, specifically in the automotive sector.

Lastly, consumer price inflation rose to 1.5% in December from 1.1% in the prior month, which had marked the lowest reading since February 2018, and annual average consumer price inflation was stable at 1.5%.

FocusEconomics Consensus Forecast panelists expect harmonized inflation to average 1.4% in 2020, which is unchanged from last month’s forecast. For 2021, our panel sees harmonized inflation averaging 1.5%. This is largely in line with the Bundesbank’s projections of harmonized inflation reaching 1.3% in 2020 and 1.6% in 2021.

Author:, Economist

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Germany Inflation Chart

Germany Inflation December 2019

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

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