2/12/2016, 8:57 AM (Source: TeleTrader)
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Inflation in Germany inches up, economic growth flat at 0.3%

Consumer prices grew 0.5% in January in Germany from the same month of last year, compared to inflation rate of 0.3% measured in December, but the indicator had a fall of 0.8% month on month. According to reports published on Friday by Destatis - Statistisches Bundesamt, wholesale prices weakened 1% from January 2014 and 0.4% from December. Gross domestic product rose 0.3% in the fourth quarter. The adjusted gauge was equal to growth registered in the three months through September. For the whole of last year, GDP increased by and average of 1.7% or 1.4% when adjusted for calendar changes. The euro  fell compared to the pound and the yen.

Comparing quarter to quarter, adjusted growth was driven by domestic demand, especially in government expenditure and capital formation in construction. On the other hand, foreign trade volumes decreased. The economy's year-on-year unadjusted expansion was 2.1% in the last three months of 2015, after 1.7% and 1.6% in the third and second quarter, respectively. However, adjusted for calendar, GDP growth was 1.3% in the last quarter compared to the same period of the previous year, lower by 0.4 and 0.3 percentage points from the reading of the previous two quarters.  

Consumer prices were pressured downward in the energy sector, where the fall in January was 5.8% from a year earlier, with heating oil dipping 24.3% in value. Food prices rose 0.9%, with growth partly offset by a drop of 4.1% in the section of dairy products. Compared to December, the overall decrease in prices came mostly due to seasonal discounts for clothing and footwear and cheaper energy.

The euro was 0.23% down against the dollar and it fell 0.43% and 0.41% compared to the pound and the yen, respectively (all 8:57 a.m. CET).

Baha Breaking News (BBN) / IT