Inflation in Germany
Germany - Inflation
Harmonized inflation slides in December
Harmonized consumer prices rose 0.4527% from the previous month in December, accelerating matchingfrom November's 0.27% rise. Strong price increases for food and non-alcoholic beverages, furnishing, household equipment and routine maintenance, and recreation and culture offset notable price drops for clothing and footwear, and transport.
Harmonized inflation came in at 5.97% in December, which was down from November’s 6.0%. Meanwhile, the trend pointed up, with annual average harmonized inflation coming in at 3.2% in December (November: 2.7%).
Analysts at the EIU added:
“We expect an easing in January 2022 as changes in the value-added tax (VAT) rate, oil prices, carbon emissions costs and the minimum wage fall out of the annual comparison period, although base effects stemming from still-depressed prices in early 2021 will keep the headline rate elevated. Domestic demand will become a more important driver of consumer price growth as 2022 progresses, alongside continued energy price pressures and supply-chain disruptions. We forecast an annual average inflation rate of 3.5% in 2022, moderating to an average of 1.8% in 202326. This will dampen opposition to the ECB's accommodative monetary policy.”
FocusEconomics panelist expect harmonized inflation to average 2.2% in 2022 and 1.7% in 2023.
Germany - Inflation Data
|Inflation Rate (CPI, annual variation in %)||0.5||0.5||1.5||1.7||1.4|
5 years of economic forecasts for more than 30 economic indicators.
Germany Inflation Chart
Source: Federal Statistics Office and FocusEconomics calculations
|Bond Yield||-0.19||0.41 %||Jan 01|
|Exchange Rate||1.12||0.65 %||Dec 31|
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January 24, 2022
A preliminary estimate revealed that the German economy expanded 2.7% year-on-year on a price-adjusted basis in 2021, marking a moderate recovery from the pandemic-induced 4.6% contraction recorded in the prior year.
January 20, 2022
Harmonized consumer prices rose 0.4527% from the previous month in December, accelerating matchingfrom November's 0.27% rise.
January 7, 2022
Industrial output fell 0.2% month-on-month in November on seasonally- and calendar-adjusted terms, swinging from the 2.4% increase recorded in the prior month.
January 7, 2022
Merchandise exports grew 1.7% month-on-month on a calendar- and seasonally-adjusted basis, easing from the 4.2% increase recorded in October.
December 17, 2021
The Ifo Business Climate Index fell from 96.6 in November to 94.7 in December, marking the lowest reading in nearly a year.