German Inflation Picks Up Again, Coming in at 1.3% Y/Y in February

1 March 2021

By David Barwick – FRANKFURT (Econostream) – Consumer prices in Germany accelerated for the second month in a row in February, growing at an annualized 1.3%, according to the flash estimate of the German Federal Statistical Office on Monday.

The increase was the highest since 1.4% in March of last year and represented a clear pick-up of the pace of price growth after January’s 1.0% and negative readings in each of the last four months of last year. On the month, German CPI in February came in at 0.7%.

On a harmonized basis, the flash estimate of German inflation was higher yet, at 1.6% and thus within striking distance of the ‘below, but close to, 2%’ threshold for price stability used by the European Central Bank.

According to the Statistical Office, measurement of prices continued to be problematic due to the pandemic, as not all goods in the basket used were readily available. However, it said, ‘[t]he quality of the preliminary overall results continues to be ensured.’

The Statistical Office will release final figures for February on March 12.