Baden-Wuerttemberg CPI
September: flat m/m, +1.3% y/y
August: flat m/m, +0.9% y/y
—
Pan-German CPI
MNI median forecast: -0.2% m/m, +1.3% y/y
MNI forecast range: -0.2 to +0.2% m/m
August: flat m/m, +1.0% y/y
—
BERLIN (MNI) – Consumer prices in the western German state of
Baden-Wuerttemberg were overall unchanged in September, which lifted the
annual inflation rate to +1.3% from +0.9% in August, the state
statistics office said Tuesday.
The monthly result was above the -0.2% median forecast for
pan-German CPI in a MNI survey of analysts.
As in the other states, downward pressure on monthly inflation came
from prices for seasonal foods, which slipped 0.7% compared to August,
along with leisure activities (-2.4%) and hotels and restaurants
(-2.2%).
Offsetting these effects were costlier clothing and shoes,
education and transport, as well as the various energy components of the
index.
In the annual comparisons, the strongest price jump was for heating
oil, up 24.8%. A 10% gain for motor fuel helped boost transport costs
3.4% on the year.
Analysts expect inflation to remain low for a fairly long time,
pointing to persisting slack in the economy. Weak underlying inflation
is expected to offset rising energy and food prices. Wage growth in all
likelihood will remain subdued, given that pay deals have been very
moderate up to now.
The Bundesbank asserted last month that “for the coming months a
continued moderate price increase is to be expected.”
At the Eurozone level there is also no sign that inflation will
move appreciably higher any time soon. ECB Governing Council member
Ewald Nowotny said last week, “We see at this time in the ECB system and
also over the medium term no tendency toward an increase in inflation
above the ECB goal” of close to but below 2%.
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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