German inflation drops to 9.2 percent in Janurary
Compared to December, prices increase by 0.5 percent.
FRANKFURT — Inflation in Germany eased to 9.2 percent in January from 9.6 percent in December, much-awaited preliminary data released by the German statistics office showed Thursday.
Compared to December, prices increased by 0.5 percent, the data showed.
Analysts polled by Reuters had generally expected inflation to rise by 10.0 percent compared to January 2022 and by 1.2 percent compared to December.
Technical issues at Germany’s statistics office delayed the release of the data and meant that the European statistics agency, Eurostat, had to report January inflation numbers using an estimate for Germany only. That eurozone estimate put inflation at 8.5 percent in January, down from 9.2 percent in December.
As part of a regular process, Germany’s consumer price index has been revised. With effect from January 2023, the consumer price index is rebased from 2015 to base year 2020. In this context, results from January 2020 onwards are recalculated, the statistics office said.
Non-harmonized, national data showed inflation rising 1 percent on the month and 8.7 percent on the year.
ZEW economist Friedrich Heinemann said the data suggests inflation in Germany has peaked. “However, anyone who takes this as an opportunity to warn the European Central Bank against further interest rate hikes suffers from a distorted perception,” he said. “Even the drop in inflation that can be expected from now on does not change the fact that the ECB is still well short of its two percent target.”