Germany: Headline inflation prints 1.4% yoy in January - ING

Carsten Brzeski, chief economist at ING, points out that German headline inflation came in at 1.4% year-on-year in January, from 1.7% YoY in December.

Key Quotes

“HICP inflation came in unchanged at 1.7% YoY.  Due to statistical revisions, the usual regional state data, which normally provides insights on individual inflation components, is not available today. With higher water levels in German rivers, low oil prices have finally reached the German economy.”

“At least in the near term, the only way for headline inflation is down, not up. While this could lead to some headaches at the ECB, it is good news for the German economy. Together with the strong labour market and high consumer confidence, low inflation is a welcome shield against the current high wave of external uncertainties.”