German inflation unexpectedly slowed, in a sign that price growth in the 19-nation euro area may also be weaker than anticipated.
Consumer prices in Europe’s largest economy rose an annual 0.2 percent in December after increasing 0.3 percent in November, the Federal Statistics Office in Wiesbaden said on Monday. Economists predicted a pickup to 0.4 percent, according to the median of 20 estimates in a Bloomberg survey.
Before today’s report, economists forecast euro-area inflation accelerated to 0.4 percent last month from 0.2 percent in November. Eurostat will release the figures on Tuesday.
The data could spark calls for the European Central Bank to increase stimulus just a month after President Mario Draghi’s latest effort to rekindle inflation and nurture a fragile economic recovery were met with disappointment in financial markets. A renewed drop in oil prices is damping expectations that inflation rates would rise in coming months, endangering the ECB’s forecast of an average rate of 1 percent in the euro area this year.
In December, the ECB predicted euro-area inflation would accelerate to 1.6 percent in 2017 from 0.1 percent last year. The Bundesbank foresees inflation in Germany at 2 percent next year. The statistics office said on Monday inflation averaged 0.1 percent in 2015.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Dean Popplewell
He has a deep understanding of market fundamentals and the impact of global events on capital markets.
He is respected among professional traders for his skilled analysis and career history as global head
of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean
has played an instrumental role in driving awareness of the forex market as an emerging asset class
for retail investors, as well as providing expert counsel to a number of internal teams on how to best
serve clients and industry stakeholders.
Latest posts by Dean Popplewell (see all)
- Euro zone bond yields sink as German manufacturing slows - 24 July 2019
- How Boris Johnson Plans to Deliver Brexit in 100 Days - 24 July 2019
- Weak PMI’s Sink EUR - 24 July 2019