People buy and walk in the shopping streets in the city center of Munich, Bavaria, Upper Bavaria, Germany, on February 20, 2025.
Michael Nguyen | Nurphoto | Getty pictures
The German annual inflation was unchanged in February, but installed 2.8% of 2.8% over the expected.
The pressure is harmonized in the entire euro area for comparability.
The pressure in February is compared to an estimate of 2.7% of economists surveyed by Reuters. The annual inflation reading, harmonized in January, was also reached at 2.8%, which remained unchanged from December.
Monthly, the harmonized inflation rose by 0.6%according to the preliminary data from destatis.
The so-called core inflation, which extends food and energy costs, was 2.6% compared to the 2.9% reading in January.
The research economist of Deutsche Bank, Sebastian Becker, described the lower core inflation reading as positive on Friday and found that the pressure is expected to continue to decrease if wage growth decreases and the wider economy remains silent.
The inflation pressure of the closely observed services also loosened to 3.8% in February after he had reached 4% in the previous month.
Despite the decline, reading the services was a “drop of bitterness” in the Friday data, since the fall was smaller than expected, Becker said according to a CNBC translation.
German inflation fell under the goal of the European Central Bank of 2% in September last year, but after five months in a row there was above the decisive brand above the decisive brand.
The German data will come on Monday and the last ECB decision later the next week before the consumer price index for the euro zone. The central bank in January has reduced interest rates for the fifth time since monetary policy began last summer, and the markets are another prizes for further equipment on Thursday.
Inflation data from Germany and in other countries of the euro zone “cemented” probably the chances of reducing 25 basis points from the ECB next week, said Carsten Brzeski, Global Head of Macro at ING, on Friday.
“However, the main question will be what is next for the ECB,” he said, noticing that some members of the political decision -makers resist the further installments. All eyes are directed on the wording of the declaration of clarification, in particular whether the ECB falls or adapted the “restrictive” label from the description of monetary policy, explained Brzeski.
Fridays are also some of the first most important economic data points that have been published since the German elections last weekend, in which the conservative alliance between the Christian Democratic Union and the Christian Social Union secured the largest proportion of voices.
This starts her main candidate Friedrich Merz to take over Olaf Scholz as a chancellor, although it is likely that the CDU-CSU will form a cable coalition with Scholz 'Social Democratic Party.
The economy was a hot topic during the campaign, with Merz suggesting that his political plans – including income and corporation tax reductions, less bureaucracy, changes in social advantages and the deregulation – would give the country's economy a necessary boost. The gross domestic product in Germany has long been in recess area and shrinks by 0.2%, seasonal and calendar adjustments after the last three months after the last three months after the last three months.
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