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- Germany’s annual inflation accelerates in December
Germany’s annual inflation accelerates in December
Germany's Federal Statistical Office reported on Friday the country's consumer price index (CPI) is expected to increase 0.5 m-o-m in December after dropping 0.8 percent m-o-m in the previous month.
On the y-o-y basis, Germany's inflation rate is seen to rise 1.5 percent this month, following a 1.1 percent gain in November. That would be the highest reading since July 2019.
On an annual average, the inflation rate is expected to stand at 1.4 percent in 2019.
Economists had predicted inflation would increase 0.4 percent m-o-m and 1.4 percent y-o-y in December.
According to the report, food price growth accelerated to 2.1 percent y-o-y in December from 1.8 percent y-o-y in November, while energy prices edged down 0.1 percent y-o-y, following a drop of 3.7 percent y-o-y in the previous month. Services costs rose 1.8 percent y-o-y in December, the same pace as in November.
Meanwhile, the harmonized index of consumer prices for Germany (HICP), which is calculated for European purposes, is expected to increase 0.6 percent m-o-m and 1.5 percent y-o-y in December, and 1.4 percent on an annual average in 2019 compared with 2018.
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