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German consumer prices to edge up in February


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German consumer prices to edge up in February

Germany's consumer prices are expected to tick up 0.5% in February from the previous month, according to provisional data from the Federal Statistical Office.

The inflation rate is expected to be 1.4% in February year on year, down from 1.6% in January.

The country's harmonized index of consumer prices is expected to rise 0.5% in February from January and by 1.2% from a year earlier. Household energy and motor fuels prices are expected to see a 0.1% increase while food price inflation is anticipated to ease to 1.1% in February from 3.1% of the prior month.

"The latest German inflation data suggests that the European Central Bank's own assessment and confidence that inflation will substantially pick up remains more wish than reality," said Carsten Brzeski, chief economist for Germany and Austria at ING Research. "Available components at the regional level show that underlying inflationary pressures have actually abated in recent months."