Bavaria CPI
June: +0.1% m/m, +1.8% y/y
May: +0.4% m/m, +1.5% y/y
—
Pan-German CPI
MNI median forecast: flat m/m, +2.0% y/y
MNI forecast range: +0.2% to +2.0% m/m
May: +0.4% m/m, +1.5% y/y
BERLIN (MNI) – Consumer prices in the western German state of Bavaria rose
0.1% in June, lifting the annual inflation rate to +1.8% from +1.5%, the state
statistics office said Friday.
The monthly result is above the median forecast of a flat reading of
pan-German CPI in a MNI survey of analysts.
With the start of the holiday season, prices for package holiday tours rose
5.0% on the month. Restaurant and hotel services climbed 0.5%.
Food prices increased by 0.5%. Alcoholic drinks and tobacco products
climbed 0.1%.
Downward pressure on monthly inflation came from energy prices. Household
energy fell 0.2% while motor fuel remained unchanged.
Clothing and shoes were 1.9% cheaper than a month ago.
In the annual comparison, household energy rose 5.3% while motor fuel fell
0.7%.
Food prices climbed 4.7%. Alcoholic drinks and tobacco products were 0.9%
more expensive than a year ago.
CPI excluding heating oil and motor fuel rose 0.1% on the month and climbed
1.9% on the year.
Inflation pressure in Germany is seen remaining tame over the coming
months. Analysts still see below-trend growth and significant spare capacity in
the economy.
Moreover, declining input costs due to cheaper oil have improved operating
margins and eased pressure on manufacturers to raise output prices.
The Finance Ministry in its latest monthly report also forecast moderate
inflation rates in the near future. For the full year of 2013, the government
expects average inflation of 1.7%.
ECB President Mario Draghi said Tuesday that the exit from the central
bank’s accommodative policy stance “is still distant”, noting that inflation in
the Eurozone is low and unemployment is high.
For detailed information see data table on MNI MainWire.
–MNI Berlin Bureau; tel: +49 30-226-20580; email: twidder@mni-news.com
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