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%.
Author: Jan Lammersen, Economist