German Consumer Price Rises in February

German consumer prices rose in February, after January’s fall.

Germany’s federal statistics office Destatis said the annual rate of inflation rose 0.1% last month.
Prices fell into negative territory in January as Germany’s consumer price index (CPI) dropped 0.4%.
But according to the harmonised index of consumer prices (HICP), the European Central Bank’s preferred figure, Germany is yet to exit its deflationary period.

Germany’s HICP index fell 0.1% in February.

The eurozone has struggled with downward pricing pressures for several months, with countries including Spain and Italy falling into deflation.

Eurozone inflation has been below the bank’s target of 2%, or just below, since the start of 2013.
The low oil price continues to weigh on overall prices. The price of oil products fell 15.1% in Germany in February.

The ECB began its government bond buying programme on Monday.

It will buy bonds worth €1.14tn over the next 18 months in a move which is expected to boost prices in the eurozone.

via BBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza