Germany: Inflation drops to over five-year low
January 5, 2015
Consumer prices were unchanged over the previous month in December, according to data released by the Federal Statistics Office (Destatis) on 5 January. The result mirrored November’s print but came in slightly below market expectations.
Annual headline inflation fell from November’s 0.6% to 0.2% in December, the lowest inflation rate since October 2009. For the whole of 2014, inflation averaged 0.9%, which marked a 51-month low and was notably down from the 1.5% average recorded for 2013.
Meanwhile, annual HICP inflation (based on the harmonized index of consumer prices) dropped from November’s 0.5% to 0.1% in December. Annual average HICP inflation also declined in December, inching down from November’s 0.9% to 0.8%.