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Financial News: German Inflation Unexpectedly Eases In January

German Inflation Unexpectedly Eases In January

01/30/2018 - 09:09:00 (RTTNews)

(RTTNews) - Germany headline inflation slowed for a second straight month in January, defying expectations for stability, as prices fell from the previous month, led by the sharp easing in energy inflation.

The consumer price index rose 1.6 percent year-on-year after 1.7 percent increase in December, preliminary data from Destatis showed Tuesday. Economists had expected the rate to remain steady.

Energy inflation slowed to 0.9 percent from 1.3 percent, while food inflation edged up to 3.1 percent from 3 percent.

Compared to the previous month, the CPI dropped 0.7 percent in January, which a tad worse than the 0.6 percent economists had predicted.

The harmonized index of consumer prices, or HICP, rose 1.4 percent year-on-year after a 1.6 percent climb in the previous month. Economists had expected the figure to remain unchanged.

On a month-on-month basis, the HICP dropped 1 percent in January, which was much severe than the 0.7 percent economists had expected.

Destatis is set to release detail results on February 14.

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