Flash Dec HICP: +0.8% m/m, +2.4% y/y
MNI median forecast: +1.0% m/m, +2.6% y/y
MNI forecast range: +0.6% to +1.2% m/m
Final Nov HICP: flat m/m, +2.8% y/y
————–
Flash Dec CPI: +0.7% m/m, +2.1% y/y
MNI median forecast: +0.8% m/m, +2.2% y/y
MNI forecast range: +0.6% to +1.2% m/m
Final Nov CPI: flat m/m, +2.4% y/y
—
FRANKFURT (MNI) – Consumer prices in Germany undershot most
expectations in both national and EU-harmonized terms in December, the
Federal Statistical Office reported on Thursday, citing preliminary
estimates.
After no change in November, the HICP rose 1.0% in December,
dampening the annual inflation rate to +2.4% from +2.8% in November. In
national terms, consumer prices rose 0.7% on the month and 2.1% on the
year after +2.4% in November.
An official breakdown is scheduled for release on January 12. Data
from the six reporting states showed strong monthly increases for
tourist services, as vacation lodgings and package holidays prices shot
up during the Christmas season.
Conversely, energy was cheaper across all six reporting states. As
a result, prices excluding energy rose faster on the month.
The December factory PMI signaled a further decline in price
pressures, as manufacturers linked cheaper raw material to the third
consecutive dip input prices (48.8), while “strong competitive
pressures” limited firms’ pricing power (52.0).
The still favorable business outlook could give companies room to
hike prices further. According to an Ifo institute survey, the
proportion of manufacturers looking to lift selling prices in the near
term recovered in December after a six-month decline to its highest
level since the summer.
Ifo forecasts average CPI at 1.8% next year after 2.3% this year.
The Organisation for Economic Cooperation and Development sees inflation
slowing to 1.6% next year from 2.4%.
— Frankfurt bureau: +49 69 720 142; email: frankfurt@marketnews.com —
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