Ger­man in­fla­tion re­mains above ECB tar­get

The Gulf Today - Business - - FRONT PAGE -

BER­LIN: Ger­man an­nual in­fla­tion ac­cel­er­ate data slower pace in novem­ber but stayed well above the Euro­pean Cen­tral Bank’s tar­get, sup­port­ing the cen­tral bank’s case for grad­u­ally rolling back its mas­sive stim­u­lus in the eu­ro­zone.

Ger­man con­sumer prices, har­monised to make them com­pa­ra­ble with in­fla­tion data from other Euro­pean Union coun­tries, rose by 2.2 per cent year-on-year after an in­crease of 2.4 per cent in the pre­vi­ous month, the Fed­eral Statis­tics Of­fice said on Thurs­day.

The ECB tar­gets in­fla­tion of close to but be­low 2 per cent for the sin­gle­cur­rency bloc as a whole.

With price pres­sures build­ing in the eu­ro­zone, the ECB last month con­firmed its plan to end its 2.6 tril­lion euro ($3 tril­lion) bond-buy­ing pro­gramme at the end of this year and raise in­ter­est rates for the first time since 2011 some­time after next sum­mer.

On the month, Eu-har­monised prices rose by 0.1 per cent, the pre­lim­i­nary num­bers showed, com­pared with the forecast for a 0.2 per cent in­crease.

A break­down of the data showed that en­ergy prices rose more in Novem­ber than in the pre­vi­ous month, while the cost of food, goods, ser­vices and house­hold rents in­creased by the same amount or at a slightly slower pace than in Oc­to­ber.

En­ergy prices have risen in Ger­many de­spite oil prices fall­ing due to a re­lent­less rise in US crude sup­ply and Saudi Ara­bia’s in­sis­tence that it will not cut out­put on its own to sta­bilise the mar­ket.

This is be­cause the cost of de­liv­er­ing oil in Ger­many has risen as sup­pli­ers had to forgo ship de­liv­er­ies as a dry sea­son ex­tended into au­tumn, re­sult­ing in fall­ing wa­ter lev­els that shut vi­tal sup­ply routes through rivers and canals in the west­ern state of North Rhine-west­phalia. Prices for en­ergy rose by 9.3 per cent this month, the high­est in­crease since 2011.

The en­ergy prices are un­likely to dam­pen pri­vate con­sump­tion in Europe’ s eco­nomic power house, which con­tin­ues to pro­vide pos­i­tive im­pulses for a growth cy­cle fac­ing head­winds from weak­en­ing ex­ports.

Sep­a­rate data re­leased on Thurs­day by the Fed­eral Labour Of­fice showed that job­less num­bers fell by more than ex­pected in Novem­ber, push­ing the un­em­ploy­ment rate to a record low.

Newspapers in English

Newspapers from UAE

© PressReader. All rights reserved.