FXStreet (Mumbai) – The federal statistics office Destatis today reported consumer prices in Germany increased by an estimated 0.4 per cent in November, higher than the 0.3 per cent recorded in October. Higher costs for food, services and rents led to the rise in CPI. CPI in Germany had remained unchanged at 107 Index Points in October from 107 Index Points in September of 2015. The Harmonised Index of Consumer Prices (HICP) stood at 0.3 per cent, also a tick higher than the 0.2 percent recorded in October.
The ECB had in March 2015 started the QE programme to stimulate growth and gradually move towards the 2.0 per inflation target. The economic slowdown in China as well as low oil prices has depressed prices thereby hurting inflation in the bloc. The euro zone central bank chief Mario Draghi hinted at adoption of further easing policies if inflation refused to move up .
On the other hand German retail sales dipped 0.4%, worse than the estimate of a 0.3% gain. The indicator, which is the primary gauge of consumer spending, gained only once in the last past five releases.
(Market News Provided by FXstreet)