German inflation, February 2025

The German annual inflation reached a 2.8% higher but higher than expected in February, the provisional data of the statistical agency destroyed on Friday.

The impression is harmonized in the euro area for comparability.

February printing is compared to an estimate of 2.7% of economists surveyed by Reuters. He January Harmonized annual inflation reading had also reached 2.8%, which no longer changed from December.

Monthly, harmonized inflation increased by 0.6%, according to preliminary de -destination data.

The so -called central inflation, which eliminates food and energy costs, reached 2.6%, below the reading of 2.9% in January.

The Deutsche Bank’s research economist, Sebastian Becker, described on Friday the inflation reading of the lower nucleus as positive and pointed out that the impression is expected to continue falling as the salary growth facilitates and the broader economy remains silenced.

The impression of observed services was also reduced, reaching 3.8% in February, after reaching 4% in the previous month.

Despite the decrease, the reading of services was a “fall of bitterness” in Friday data, since the fall was smaller than expected, Becker said according to a translation of CNBC.

The German inflation had fallen below the objective of the European Central Bank of 2% in September last year, but it was accelerated later and has remained above the crucial brand for five months in a row now.

The German data arrive before the impression of the consumer price index for the euro zone on Monday and the ECB’s last decision later. The Central Bank in January reduced interest rates for the fifth time since it began to relieve monetary policy last summer and markets have a broad price in another adjustment on Thursday.

Germany’s inflation data, as well as other countries in the euro zone, probably the “cemented” possibilities of a reduction of 25 base BCE points next week, said Carsten Brzeski, chief of macro macro in ING, in a note on Friday.

“The main question, however, will be what follows for the ECB,” he said, and pointed out that some members of the policy formulators have begun to resist more rate cuts. All eyes will be in the drafting of the statement after the announcement, specifically if the ECB decides to leave or adjust the “restrictive” label of its description of the monetary policy, Brzeski explained.

Friday’s figures are also some of the first key points of economic data that will be published from the German election Last weekend, in which the conservative alliance between the Christian Democratic Union and the Christian Social Union secured most of the votes.

This puts your main candidate Friedrich Merz Online to assume the position of Olaf Scholz as Chancellor, although it seems likely that the CDU-CSU forms a ruling coalition with the Social Democratic Party of Scholz.

The economy was a hot topic during the campaign, with Merz suggesting that its policy plans, including corporate income and taxes, less bureaucracy, changes in social benefits and deregulation, would give the country’s economy a necessary impulse. The Gross Domestic Product of Germany has been around for a long time around the territory of the recession, and 0.2% was reduced after the price, seasonal and calendar settings in the last quarter of 2024 since the previous three months, according to destrol.