Baden-Wuerttemberg CPI

February: +0.9% m/m, +2.5% y/y
January: -0.4% m/m, +2.2% y/y
—
Pan-German CPI

MNI median forecast: +0.5% m/m, +2.2% y/y
MNI forecast range: +0.4% to +0.8% m/m

January: -0.4% m/m, +2.1% y/y
—

BERLIN (MNI)- Consumer prices in the western German state of
Baden-Wuerttemberg rose 0.9% in February, lifting the annual inflation
rate to +2.5% from +2.2%, the state statistics office said Tuesday.

The monthly result is above the median forecast of +0.5% for
pan-German CPI in a MNI survey of analysts. Earlier today, consumer
prices in Bavaria also rose by 0.9% on the month. Brandenburg and Hesse
both posted monthly CPI increases of 0.8%, while Saxony registered a
0.7% rise.

Boosted by the 2.2% monthly rise in motor fuel prices, transport
prices were up 0.8% and 5.0% on the month and year, respectively.
Heating oil also saw some notable gains in February, rising 5.0%
compared to January, and helping to lift household energy prices 1.1% on
the month.

Food prices were up 1.5% on the month, while alcoholic beverages
and tobacco products rose by a more modest 0.5%.

Clothing and shoe prices jumped 2.6% between January and February,
while leisure prices were up 2.7% over the same period.

Annual price developments were driven mainly by energy price
increases, as reflected in the 19.5% jump in heating oil prices and the
9.8% rise in motor fuel.

Inflation is expected to slow in the near term on the back of
weaker domestic and global economic growth and energy base effects.

“Assuming slower energy-price inflation, year-on-year inflation
should tend to moderate from its present level over the next few
months,” the Bundesbank predicted earlier this month.

The German Finance Ministry last week projected inflation to slow
this year due to declining imported price pressures and an expected more
moderate rise in unit labor costs.

The economic panel of the German Banking Association (BDB),
consisting of the chief economists of the main private banks in Germany,
last week forecast German inflation of 1.7% this year and 1.8% next
year. The OECD forecast earlier this month HICP harmonized inflation for
Germany of 1.6% in 2012 and 1.5% in 2013.

For detailed information see data table on MNI MainWire.

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

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