Customers waiting in a supermarket at the cash register.
Markus Scholz | Image Allianz | Getty pictures
German inflation was unchanged in January compared to the previous year. Preliminary data from the country's statistics office showed in the last reading on Friday before the Germans went on surveys in the surveys next month.
The reading also agreed with a forecast of economists who were asked by Reuters. The pressure is harmonized in the entire euro area for comparability.
The harmonized consumer price index fell by 0.2% monthly
The inflation rate of Germany has now remained above the 2% destination of the European Central Bank for the fourth month in a row, after falling under this threshold in September last year.
This roughly reflects the development of re-combating inflation in the broader euro area. The European Central Bank said on Thursday that disinflation in the block is “good on the right track” and has developed in detail in accordance with the forecasts of the employees.
Inflation in the euro region was 2.4%in December. The January number is to be published next week.
The data on Friday showed that the German core inflation, which will open the food and energy prices, was 2.9% in January, which will be significantly off from December from 3.3%.
The inflation of the services also dissolved easily and in January rose 4% compared to 4.1% in December.
According to Sebastian Becker, economist at Deutsche Bank Research, Germany's weak economy seems to have a disinflation effect, Sebastian Becker said in a note on Friday.
Preliminary data published on Thursday showed that the Germany's economy was completed by 0.2% in the fourth quarter of last year, which was more than expected.
“This strengthens our view that the service rate and thus the core rate will continue to decrease in the course of the year,” he said according to a CNBC translation. This indicates that the European Central Bank will probably adhere to its money policy, added Becker.
January inflation printing is one of the final important economic data that was published on February 23 before the election of Germany and earlier than originally took place after the collapse of the ruling coalition in November 2024.
Germany's economy was one of the big topics during the campaign next to immigration, since the country separated with a lackluster economic growth and the increase in inflation.
The government reduced gross domestic product expectations for the year 2025 to 0.3% at the beginning of this week after the annual GDP had exceeded a contract in the past two years. The quarterly growth was also sluggish, even when the economy has previously avoided a technical recession through two consecutive quarters of the contraction.
The government that is not harmonized this year is expected to have an average of 2.2% this year, the government added in its annual economic report.
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