🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

German inflation edges closer to ECB target in June, state data show

Published 06/27/2019, 05:32 AM
Updated 06/27/2019, 05:35 AM
© Reuters. FILE PHOTO: People carry their shopping bags in downtown Hamburg

BERLIN (Reuters) - Inflation edged closer to the European Central Bank's target in German states in June, data showed on Thursday, but analysts said the figures are unlikely to prompt a reversal of its decision not to raise interest rates in the coming year.

The ECB aims to keep inflation in the euro zone close to, but just below, 2% a year. Earlier this month, it opened the door to cutting rates or buying more bonds, as risk factors such as trade wars dragged down the euro zone economy.

"The ECB is not going to focus on just one number, even if that number is from Germany," said Jack Allen-Reynolds of Capital Economics. "Economic growth in the euro zone is pretty weak and underlying inflation remains subdued. The ECB has been preparing the markets for more stimulus and those numbers are not going to make it change its mind."

A poll conducted before the release of the regional data suggested German consumer price inflation, harmonized to compare with data from other European Union countries, would remain unchanged at 1.3%.

The state data suggested that the nationwide preliminary inflation figures due at 1200 GMT might confound the forecast.

In North Rhine-Westphalia, Germany's most populous state, inflation accelerated to 1.7% from 1.6%. In Bavaria, consumer prices rose by 1.8% after a 1.6% increase in May.

The state inflation readings, which are not harmonized to compare with other countries, feed into nationwide figures.

© Reuters. FILE PHOTO: People carry their shopping bags in downtown Hamburg

Economists expect euro zone inflation -- due on June 28 -- remained at 1.2% in June.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.