Germany's Inflation Slows As Estimated

Germany's consumer price inflation slowed as estimated in January, final data from Destatis showed Wednesday. The consumer price index rose 1.6 percent year-on-year after 1.7 percent increase in December, final data from Destatis showed Wednesday. The rate came in line with preliminary estimate. 

On a monthly basis, the CPI dropped 0.7 percent, as initially estimated, reversing a 0.6 percent rise in December. The major reason for the decline was seasonal factors. The harmonized index of consumer prices, or HICP, rose 1.4 percent year-on-year after a 1.6 percent climb in the previous month. On a month-on-month basis, the HICP dropped 1 percent in January. 

Both annual and monthly HICP inflation rates were confirmed. 

Mean while Germany's economy grew as expected at the end of 2017, data published by Destatis showed Tuesday. Gross domestic product grew 0.6 percent sequentially in the fourth quarter, in line with expectations, but slightly slower than the 0.7 percent expansion seen in the third quarter. At the same time, the calendar-adjusted GDP advanced at a faster pace of 2.9 percent annually, after rising 2.7 percent. 

GDP was forecast to grow 3 percent. Similarly, price-adjusted GDP grew 2.3 percent versus 2.2 percent a quarter ago. Positive contribution to sequential growth came mainly from foreign demand. General government final consumption expenditure increased, whereas household final consumption expenditure remained roughly at the previous quarter's level. 

Gross fixed capital formation in machinery and equipment was slightly up on the previous quarter, while capital formation in construction was slightly down, Destatis said. Destatis reported 2.2 percent growth for the whole year of 2017. The provisional annual GDP result released in January has been confirmed.