July 31, 2015

Consumer prices in July rose 0.2% over the previous month, according to preliminary data released by the Federal Statistics Office (Destatis) on 30 July. The result contrasted June’s 0.1% drop.



Headline inflation receded from June’s 0.3% to 0.2% in July, the lowest reading in five months. Meanwhile, annual average inflation moderated from June’s 0.5% to 0.4% in July.



HICP inflation, which is based on the harmonized index of consumer prices, stabilized in July at June’s 0.1%. Annual average HICP inflation came in at 0.3% in July, which was slightly down from the previous month’s 0.4%.

The Central Bank expects inflation to be 0.5% in 2015 and sees it increasing to 1.8% in 2016. FocusEconomics panelists expect inflation to average 0.5% in 2015, which is unchanged from the previous month’s forecast. For 2016, panelists expect inflation to increase to 1.7%.