Germany’s consumer price inflation turned positive in January for the first time in seven months, flash data from Destatis showed on Thursday.
The consumer price index rose 1.0 percent year-on-year after a 0.3 percent fall in December. Economists had expected a 0.7 percent increase.
The harmonized index of consumer prices, or HICP, which is meant for EU comparison, rose 1.6 percent year-on-year in January after a 0.7 percent fall in December. Economists had forecast a 0.5 percent rise.
In January, inflation was influenced by the increase in VAT rates and by other factors such as CO2 prices and the increase in the statutory minimum wage from January 2021, Destatis said.
Inflation has been in the negative territory since June last year, save for flat figures in CPI in August and in HICP in July.
The decline in energy prices slowed to 2.3 percent from 6.0 percent. Food prices rose 2.2 percent annually after a 0.5 percent increase in the previous month. Services costs grew 1.5 percent year-on-year after a 1.1 percent rise.
On a month-on-month basis, the CPI climbed 0.8 percent after a 0.5 percent rise in December. Economists had forecast a 0.4 percent gain.
Compared to the previous month, the HICP climbed 1.4 percent in January after a 0.6 percent increase in December. Economists had expected a 0.3 percent rise.
The material has been provided by InstaForex Company – www.instaforex.com