Germany: Inflation moderates in February
March 14, 2018
Consumer prices increased 0.5% in February over the previous month, data released by the Federal Statistics Office (Destatis) on 14 March showed. The result matched market expectations but contrasted January’s 0.7% decrease. It came on the back of a 10.3% month-on-month jump in prices of package holidays and a 3.4% increase in prices of clothing.
Inflation moderated from 1.6% in January to 1.4% in February, in line with market expectations. Annual average inflation, however, was stable in February at January’s print of 1.7%.
Meanwhile, harmonized inflation (HICP) moderated from 1.4% in January to 1.2% in February, while average HICP in February edged down to 1.6% from the prior month’s 1.7%.
Germany Inflation Forecast
The Central Bank expects inflation of 1.6% in 2018 and 1.7% in 2019. FocusEconomics panelists see inflation averaging 1.7% in 2018, which is unchanged from last month’s forecast. For 2019, panelists forecast inflation of 1.8%.
Author: Jan Lammersen, Economist