February 27, 2015

Consumer prices in February rose 1.0% over the previous month, according to preliminary data released by the Federal Statistics Office (Destatis) on 27 February. The result significantly contrasted January’s 1.1% price drop and overshot market expectations of a 0.7% increase.



In annual terms, consumer prices rose 0.1% in February, contrasting January’s 0.4% decline in prices that had represented the steepest drop since July 2009. Annual average inflation inched down from January’s 0.8% to 0.7% in February.



Meanwhile, harmonized consumer prices rose 1.0% in annual terms, contrasting January’s 1.3% decrease. Annual average HICP in February remained at January’s 0.6%.

The Central Bank expects inflation of 1.1% in 2015, before increasing to 1.8% in 2016. FocusEconomics panelists expect inflation to average 0.4% in 2015, which is down 0.1 percentage points from the previous month’s forecast. For 2016, panelists expect inflation to increase to 1.5%.