People buy and walk through the commercial streets of the city center of Munich, Bavaria, Bavaria Superior, Germany, on February 20, 2025.
Michael Nguyen | Nurphoto | Pictures of getty
German annual inflation occurred by 2.8% more unaltered, but higher than expected, in February, the provisional data of the Disstatic Statistics Agency was shown on Friday.
Printing is harmonized in the euro area for comparability.
The February printing is compared with an estimate of 2.7% of the economists surveyed by Reuters. It January The annual reading of harmonized inflation had also reached 2.8%, which was no longer changed from December.
Monthly, harmonized inflation increased by 0.6%, according to preliminary data from disruptive.
The so -called nucleus inflation, which eliminates food and energy costs, reached 2.6%, below the reading of January 2.9%.
Deutsche Bank’s research economist Sebastian Becker described the reading of central inflation on Friday as a positive, and said that the impression is expected to continue to decrease as the facilitated salary growth and the broadest economy remain silenced.
The impact of inflation of services closely, also relieved, will reach 3.8% in February, after hitting 4% the previous month.
Despite the fall, the reading of the services was a « drop of bitterness » in Friday’s data, as the fall was smaller than expected, Becker said according to a CNBC translation.
German inflation had fallen below 2% of the European Central Bank’s goal in September last year, but was accelerated later and remained above the crucial brand for five months in a row.
German data comes Monday ahead of the consumer price index in the euro area and the last decision of the ECB next week. The Central Bank in January has reduced interest rates for fifth time since it began to relieve monetary policy last summer and markets have a wide price on another cut on Thursday.
Germany data from Germany, as well as in other countries in the euro area, probably « cemented » possibilities of a reduction of 25 BCE bases next week, said Carsten Brzeski, chief macro of the ing, in a note Friday.
« The main question, however, will be what happens to the ECB, » he said, noting that some members of policymakers have begun to withstand rates cuts. All eyes will be in the writing of the post -uncence statement, specifically if the ECB chooses to leave or adjust the « restrictive » label of its description of monetary policy, explained Brzeski.
Friday’s figures are also some of the first economic data points to be published from the German elections Last weekend, in which the conservative alliance between the Christian Democratic Union and the Christian Social Union won most of the votes.
This puts their main candidate Friedrich Merz In adjustment to take over from Olaf Scholz as Chancellor, although it seems likely that the CDU-CSU will form a ruler coalition with the Scholz Social Democratic Party.
The economy was a hot topic during the campaign, with Merz that suggests that his policy plans, including income and tax cuts, less bureaucracy, changes in social benefits and deregulation, would give the country’s economy a necessary impetus. Germany’s gross domestic product has been around the recession territory for some time and has reduced 0.2% after the pricing adjustments, seasonal and calendars in the last quarter of 2024 of the previous three months, according to unnoticed.
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