Germany: Inflation eases slightly in December

Consumer prices rose 0.6% in December over to the previous month, according to data released by the Federal Statistics Office (Destatis) on 16 January. The result matched market expectations and was supported by a notable increase in the prices for recreation and culture.

Inflation moderated slightly to 1.7% in December, also in line with market expectations. The result came in below the previous month’s figure of 1.8%. Annual average inflation, however, was stable in December at November’s print of 1.7%.

Meanwhile, harmonized inflation (HICP) eased from 1.8% in November to 1.6% in December; nonetheless, average HICP was stable at 1.7% in December.

Germany Inflation Forecast

The Central Bank expects inflation of 1.4% in 2018. FocusEconomics panelists see inflation averaging 1.6% in 2018, which is unchanged from last month’s forecast. For 2019, panelists forecast inflation of 1.8%.