German Inflation Eases As Estimated In January

(RTTNews) - Germany's consumer price inflation moderated as initially estimated at the start of the year, the latest data from the statistical office Destatis showed on Thursday.

The consumer price index rose 2.3 percent year-on-year in January following a 2.6 percent increase in December, which was the highest inflation rate in eleven months. That was in line with the flash data published on January 31.

Inflation based on the harmonized index of consumer prices was unchanged at 2.8 percent in January, as estimated. Monthly, the HICP edged down 0.2 percent.

Core inflation that excludes prices of food and energy slowed to 2.9 percent from 3.3 percent. That was the lowest since October, when it was at the same level.

The price development for energy and food dampened the inflation rate in January, while the above-average price increases for services in particular continued to drive inflation, the agency said.

Energy prices were 1.6 percent cheaper compared to last year, and food price inflation softened notably to 0.8 percent from 2.0 percent in December.

Costs for services grew 4.0 percent annually in January, significantly higher than overall inflation. Data showed that goods prices showed an increase of 0.9 percent.

The CPI decreased 0.2 percent month-on-month following a 0.5 percent increase in December, as estimated.