Germany Consumer Price Inflation Fastest Since 1993
October 28 2021 - 4:43AM
RTTF2
Germany's consumer price inflation accelerated the most since
1993, largely driven by higher energy prices, preliminary data from
Destatis showed on Thursday.
Consumer price inflation advanced to 4.5 percent in October from
4.1 percent in September. The rate was also above economists'
forecast of 4.4 percent. A similar higher price growth was last
seen in October 1993.
The harmonized index of consumer prices grew 4.6 percent on year
after climbing 4.1 percent in September. The expected rate was 4.5
percent. Final data is due on November 10.
Prices of goods increased 7 percent, following a 6.1 percent
rise in September. Meanwhile, growth in services eased marginally
to 2.4 percent from 2.5 percent. Energy prices surged 18.6 percent
from the last year and food prices were up 4.4 percent.
On a monthly basis, consumer prices and harmonized prices gained
0.5 percent each in October. Monthly consumer price inflation
matched the flash estimate, while harmonized consumer prices were
expected to grow moderately by 0.4 percent.
Elsewhere, the German Chamber of Commerce and Industry, DIHK
downgraded its growth outlook for this year to 2.3 percent from 3.0
percent. The economy is projected to grow 3.6 percent in 2022.
The DIHK said the situation is good at the moment, but the
outlook is disappointing. The lobby does not expect a sustainable,
investment-driven upturn.
According to the DIHK survey, companies estimate their current
business situation much better than they did in early summer.
However, expectations for the next twelve months are lower than
would be necessary for a sustainable catch-up process.
Monthly data released by the Federal Labor Agency, earlier in
the day, showed that the number of people out of work decreased by
39,000 in October after falling 31,000 in September. This was
bigger than the economists' forecast of -20,000.
The jobless rate fell to 5.4 percent in October, in line with
expectations, from 5.5 percent in September.
US Dollar vs Yen (FX:USDJPY)
Forex Chart
From Aug 2024 to Sep 2024
US Dollar vs Yen (FX:USDJPY)
Forex Chart
From Sep 2023 to Sep 2024