German inflation unexpectedly accelerates to 2.2% on energy | Fin24
 
In partnership with
  • Money Flows

    About 3 000 super-rich have left SA in the past 10 years, according to a new report.

  • Nelson Mandela

    Madiba would have been alarmed at the polarisation and hate speech in SA, says Derek Hanekom.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

German inflation unexpectedly accelerates to 2.2% on energy

Sep 27 2018 14:30
Xiaoqing Pi, Bloomberg

German inflation unexpectedly accelerated to a four-month high, suggesting the rate in the eurozone will rise further above the European Central Bank’s (ECB) goal.

Consumer prices rose an annual 2.2% in September, exceeding the median estimate in a Bloomberg survey and the 1.9% reached in August. Eurostat will release data for the 19-nation eurozone on Friday.

Inflation in Germany has been slightly stronger than in the currency bloc in recent years, supported by a strong labour market and robust domestic growth. The latest pick-up - boosted by rising energy costs - is likely to add to discontent in Europe’s largest economy about continuously loose monetary policy and amplify calls for higher interest rates.

Governing Council member Ewald Nowotny of Austria has already said the ECB should consider tightening policy sooner than originally planned. While the ECB expects to end asset purchases in December, officials have signalled borrowing costs won’t rise until after the summer of 2019.

Any demands for a faster exit from unconventional stimulus are likely to be countered by increasingly uncertain economic prospects. Germany slashed its growth forecasts on rising protectionism, and the World Trade Organisation downgraded its view of global commerce.

The ECB acknowledged the threats when it presented updated economic projections in September, even though it maintained risks to the growth outlook are still broadly balanced and confidence in inflation has improved.

Before the German numbers, eurozone inflation was forecast to accelerate to 2.1%. The ECB’s goal is to keep price growth just below 2% over the medium term.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

germany  |  inflation  |  economy
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Do you think government can solve the Eskom crisis?

Previous results · Suggest a vote

Loading...