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German Inflation Confirmed at 40-year High

GERMAN DATA
MNI (London)

GERMANY DEC HICP +0.3% M/M, +5.7% Y/Y; NOV +6.0% Y/Y

GERMANY DEC CPI +0.5% M/M, +5.3% Y/Y; NOV +5.2% Y/Y

  • December CPI reached +5.3% y/y, confirming a 40-year high for the German economy.
  • This is an increase of +3.1% compared to 2020.
  • All final readings were in line with flash estimates.
  • The main inflationary growth occurred in the monthly readings in the second half of 2021, on the back of the VAT reduction and oil price growth. Good rose an average of +4.3%, services rose +2.1% and food prices were up +3.2% in 2021 (vs 2020).
  • Core inflation was at +2.3% y/y.

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