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German Consumer Prices Jumped in January, in Line With Forecasts

German consumer prices jumped in January, confirming preliminary data, German statistics agency Destatis said Wednesday.

On a year-on-year basis, consumer prices rose 1.0% measured by national standards and 1.6% by European Union-harmonized standards, with both figures in line with the increases expected by economists polled by The Wall Street Journal.

The jump in the inflation rate was driven not only by the reversal of the temporary VAT cut, but also by other factors, including carbon pricing and an increase in the minimum wage, Destatis said.

Consumer prices rose 0.8% on month by national standards and 1.4% by EU-harmonized standards. These were in line with the forecasts of economists polled by The Wall Street Journal.

The prices of goods were up 0.6% on year in January. Food prices rose 2.2%, reflecting an increase in the three categories of meat and meat products, fruit and vegetables. In contrast, the prices of energy products fell 2.3% from the same month a year earlier, although the decline was less steep compared with December.

Meanwhile, the prices of services rose 1.4% on year in January.

The coronavirus pandemic and its related restrictions caused pricing collection problems again in January as some products weren’t available in the market, Destatis said.
Source: Dow Jones

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