Flash Mar HICP: +0.4% m/m, +2.3% y/y

MNI median forecast: +0.3% m/m, +2.2% y/y
MNI forecast range: +0.2% to +0.4% m/m

Final Feb HICP: +0.9% m/m, +2.5% y/y
————–
Flash Mar CPI: +0.3% m/m, +2.1% y/y

MNI median forecast: +0.4% m/m, +2.2% y/y
MNI forecast range: +0.3% to +0.6% m/m

Final Feb CPI: +0.7% m/m, +2.3% y/y
————–

BERLIN (MNI) – German consumer prices in March rose 0.3% in
national terms and 0.4% in EU-harmonized terms, which dampened annual
rates to +2.1% for CPI and to +2.3% for HICP, the Federal Statistical
Office estimated Wednesday.

The median forecasts in an MNI survey of analysts were for a 0.4%
monthly rise in CPI and a 0.3% increase in HICP.

As usual, the Statistics Office provided few details on price
developments with the flash release. Data from reporting states showed
that upward pressure on monthly inflation came from heating oil and
motor fuel, as well as from food prices.

Annual price developments were also mainly driven by energy, along
with costlier food and clothing, the various state releases showed.

Due to sticky high oil prices, analysts expect annual inflation to
remain above 2% for the near future. However, core inflation is seen
rising only modestly due to weak wage growth over the past two years.

Last week, International Monetary Fund managing director Christine
Lagarde said that recent developments in oil had overtaken the Eurozone
sovereign debt crisis as the biggest concern for global growth.

The German Finance Ministry last week warned of inflation risks
from the oil price rise. “The resulting burden on purchasing power could
impair the momentum of consumption growth by private households,” it
cautioned.

Import prices in Germany maintained their upward trend in February
on the back of costlier energy, though the pace of increase declined,
the Federal Statistical Office reported on Tuesday.

ECB president Mario Draghi said on Monday that inflation in the
Eurozone was under control.

“Market indicators of inflation expectations overall show no signs
of inflation above our medium-term objective,” Draghi said. “Market
expectations of long-term inflation are fully consistent with our
definition of medium-term price stability.”

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

[TOPICS: M$G$$$,M$X$$$,MAGDS$,M$XDS$,MT$$$$]