Germany: Inflation jumps on higher fuel prices
August 29, 2012
In August, consumer prices rose 0.3% over the previous month, according to a preliminary flash estimate released by the statistical institute on 29 August. The reading was a notch below the 0.4% increase observed in July. Annual headline inflation ended its downward trajectory in place since February and rose from 1.7% in July to 2.0%, which exceeded market expectations that had inflation edging up to 1.8%. According to the institute, annual inflation accelerated in August, as prices for fuel and heating oil rose notably. HICP inflation (based on the harmonized index of consumer prices) followed suit and jumped from 1.9% in July to 2.2%. Meanwhile, annual average HICP inflation remained stable at July's 2.4%. More detailed inflation data will be published on 12 August.
Author: Ricardo Aceves, Senior Economist