Annual inflation in Germany was unchanged in February

Annual inflation in Germany was 8.7 percent in February, in line with expectations. The German Federal Statistical Office (Destatis) has published its main data for February on price increases.

Consequently, annual inflation in Germany, which was 8.7 percent in January, did not change in February as expected. In Germany, the consumer price index (CPI) rose 0.8 percent in February compared to the previous month.

In the same period, it is worth noting that energy prices increased by 19.1 percent annually, while the annual increase in food prices was above average at 21.8 percent. The increase in services was 4.7 percent.

The EU-compliant CPI also rose 1 percent monthly and 9.3 percent annually in February.

ENERGY AND FOOD CASH

In the Destatis statement, it was stated that especially energy and food prices have risen sharply since the beginning of the Russian-Ukrainian war, and this has a significant effect on inflation.

On the other hand, the inflation outlook will determine how far the ECB will go in raising interest rates and how quickly it will proceed. The Eurozone inflation data for February will be released tomorrow. In France, the euro zone’s second-largest economy, inflation, which was 7 percent in January, rose to 7.2 percent in February, beating expectations.

While the ECB has raised the main interest rates 5 times in a few months, the interest rate on deposits, which is the determining factor in financial markets, is currently at the level of 2.5 percent. ECB President Christine Lagarde had forecast a 50 basis point hike in interest rates for the meeting in mid-March, taking into account inflation of 8.6 percent. (AA)