Final HICP
April: -0.1% m/m +1.0% y/y
Final CPI
April: -0.1% m/m, +1.0% y/y
—
BERLIN (MNI) – Germany’s harmonized annual inflation rose 1.0% in
April, the Federal Statistical Office said Tuesday, confirming its flash
estimate.
The stats office also confirmed the flash estimate of the monthly
drop of 0.1%.
Germany’s national CPI was unrevised at -0.1% m/m and +1.0% y/y.
The monthly fall was driven by falling prices for leisure and
entertainment services (-2.9%), packaged holiday tours (-12.1%) as well
as hotel and restaurant services (-1.3%).
Upward pressure came from rising prices for light heating oil
(+5.8%), motor fuel (+1.8%), gas (+0.3%), electricity (+0.2%), food
(+0.8%) as well as for clothing and shoes (+0.3%).
Annual CPI was mainly driven by rising prices for light heating oil
(+32.9%), motor fuel (+16.4%), electricity (+2.5%), food (+1.5%) and
clothing and shoes (+1.0%).
These were partly offset by price drops for leisure and
entertainment services (-2.2%), packaged holiday tours (-9.2%), gas
(-9.8%) and educational cost (-1.4%).
Energy and commodity prices are expected to lift consumer prices
also over the medium term.
Underlying German inflation, though, is seen staying moderate for
the time being. The huge slack in the German economy and a still clouded
outlook for consumer spending leave firms little leeway for price hikes.
With unemployment still elevated, wage growth in all likelihood
will remain low. German trade unions so far have this year have settled
for very moderate wage deals.
The German government forecasts average inflation rates of +1.3% in
2010 and +1.4% next year. The country’s leading economic institutes
project average inflation of +0.9% and +1.0% this year and next.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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