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German CPI flash confirmed, inflation softens

GERMAN DATA
MNI (London)

GERMANY JAN FINAL HICP +0.9% M/M, +5.1% Y/Y; DEC +5.7% Y/Y

GERMANY JAN FINAL CPI +0.4% M/M, +4.9% Y/Y; DEC +5.3% Y/Y

  • German final inflation data for January confirmed flash estimates, confirming a softening on the December print.
  • Headline inflation grew +4.9% y/y in January, weakening from the 30-year high of +5.3% y/y seen in the month prior.
  • This reading sees the end of base effects associated with VAT reductions and a 2020 mineral oil prices dip.
  • Energy prices jumped +20.5% y/y in January, further underpinned by additional CO2 taxes, overall goods inflation grew by +7.2% y/y whilst food prices were up +5.0% y/y.
  • On the core reading, inflation is seen at +3.2% y/y.

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