The year-over-year growth rate of consumer prices has been speeding up to 1.5
percent in Germany in June, according to the data harmonized with EU
calculation methodology, as announced by German Statistics Office today. It has
refined its own previous estimation, that predicted inflation rate to stay at the
same level as in May – 1.3 percent. Despite the revisions, the inflation in Europe’s
largest economy is positioned far from European Central Bank (ECB) target and
supports ECB decision not to increase interest rates in the upcoming year.
Compared to the previous month, harmonized prices in Germany rose by 0.3
percent, the estimation stated just 0.1 percent.
Statistical office has also stated that according to the non-harmonized data,
prices of alcohol, tobacco and transportation have risen by 2.1 percent. Rent,
energy, clothing and shoes prices have increased by almost 2 percent. Food and
drinks are more expensive by 1 percent and telecommunications services are 1.1
percent cheaper.
In April, harmonized inflation rate has broken the ECB target for the first time
since last November. ECB aims to retain inflation rate just under 2 percent.
Analysts warned at that time that price increase may be related to one-off price
increase around Easter holidays. The inflation rate in the following month has
then decreased to 1.3 percent, which was the lowest value since last February.
