German consumer price inflation rate accelerates as expected

The rate of increase in German consumer prices accelerated to 1.9 per cent in July compared to the year before, according to the latest consumer price index (CPI) from the Statistiches Bundesamt Deutschland. This was up from 1.8 per cent annual inflation recorded the month before and in line with analysts' expectations.

Compared to June 2013, the CPI rose by 0.5 per cent, following a 0.1 per cent increase from May and in line with expectations.

Harmonised across EU member states, German CPI rose by 1.9 per cent year-on-year and 0.4 per cent month-on-month, according to Destasis, again in line with expectations. This compares to a respective 1.9 per cent and 0.1 per cent the month before.

The German statistics office also released figures for the wholesale price index, representing the value of sales made by German wholesalers. The wholesale price index was flat year-on-year in July, missing expectations of a 0.6 per cent rise, and was down 0.3 per cent month-on-month, missing expectations of a 0.1 per cent increase.