Annual inflation picked up in five German states in December, data showed today, pointing to a higher-than expected national inflation rate and growing price pressure in the broader euro.
Prices rose 1.1 per cent on the month in Germany's most populous state of North Rhine-Westphalia, accelerating from a rate of 0.1 percent a month earlier, while annual inflation picked up to 1.8 per cent from 1.5 per cent in November.
Annual inflation also accelerated in Brandenburg, Saxony, Hesse and Baden-Wuerttemberg, data from the states' statistics offices showed. Only Bavaria showed a slight easing, with annual inflation falling to 1.6 per cent from 1.7 per cent a month earlier.
The numbers from all six states taken together will be used to constitute a preliminary national inflation index to be released later in the day.
A poll of economists by Reuters last week forecast Germany's consumer price index (CPI) would show annual inflation holding steady at 1.5 per cent this month. Prices were predicted to rise 0.8 per cent compared with the previous month.
With five out of the six states posting annual inflation rates above the forecast, national CPI should be higher.
Figures from the six German states also offer a first hint of price trends within the 16-nation euro zone, where the annual inflation rate was expected to accelerate by a tenth of a point to 2 per cent in December, a separate Reuters poll showed.
Reuters