2019.02.2808:29:00UTC+00German Inflation Accelerates For First Time In 4 Months

Germany's consumer price inflation accelerated for the first time in four months in February and at a faster than expected pace, preliminary data from the Federal Statistical Office showed on Thursday.

The consumer price index rose 1.6 percent year-on-year following a 1.4 percent increase in January. Economists had expected 1.5 percent inflation.

Energy inflation rose slightly to 2.9 percent from 2.3 percent. Food inflation climbed to 1.5 percent from 0.8 percent.

"Today's inflation data illustrate that the drop in global oil prices since late-September has still not fully reached German consumers," ING economist Carsten Brzeski said.

On a month-on-month basis, the CPI rose 0.5 percent in February, which was in line with economists' expectations.

Inflation based on the harmonized index of consumer prices was steady at 1.7 percent for a third month. That also matched economists' forecast. Compared to the previous month, the HICP rose 0.5 percent in February, in line with economists forecast.

"While today's inflation data might still leave the ECB a bit baffled, it is good news for the German economy," ING's Brzeski said.

"Together with the strong labor market and high consumer confidence, low inflation is a welcome shield against the current high wave of external uncertainties." Destatis is set to release the detail data on February inflation on March 14.