By Hans Bentzien
FRANKFURT (Dow Jones)–Inflationary pressure in Germany eased somewhat more than expected in September. According to the Federal Statistical Office (Destatis), the Harmonized Consumer Price Index (HICP) rose by 0.2 percent compared to the previous month and was 4.3 (August: 6.4) percent above the level of the same month last year. Economists surveyed by Dow Jones Newswires had forecast a monthly price increase of 0.3 percent and an annual inflation rate of 4.5 percent.
German prices are an important input for the euro area inflation data, which will be published on Friday (11 a.m.). Inflationary pressure increased in Spain – the HICP rose here at an annual rate of 3.2 (2.4) percent. 3.4 percent was expected. French price data will be published on Friday (8:45 a.m.).
The European Central Bank (ECB) is alarmed by high inflation and its potential impact on inflation expectations, which could lead to a wage-price spiral and thus a consolidation of high price pressures. The ECB has so far increased its key interest rates by a total of 450 basis points – most recently four by 25 basis points.
Germany’s national consumer price index rose by 0.3 percent for the month and exceeded the level of the same month last year by 4.5 (6.1) percent. Economists had forecast rates of plus 0.4 and 4.7 percent. The core inflation rate fell to 4.6 (5.5) percent.
Goods rose in price over the year by 5.0 (7.1) percent, including energy by 1.0 (8.3) percent and food by 7.5 (9.0) percent. Services cost 4.0 (5.1) percent more than a year ago.
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(END) Dow Jones Newswires
September 28, 2023 08:10 ET (12:10 GMT)