10 December 2002, 10:43
RANKFURT (MktNews) - German final harmonised consumer prices
(HICP) for November were revised down to -0.5% m/m and +1.0% y/y from an
initial -0.4% m/m and +1.1% y/y , the Federal Statistical Office
announced Tuesday.
German HICP fell 0.1% m/m and +1.3% y/y in October.
National CPI was unrevised at -0.4% m/m and +1.1% y/y after a flat
reading m/m and +1.3% y/y in October.
The downward revision to HICP will increase talk that German prices
are bordering on deflation. The ECB has already identified 1.0%
inflation as the borderline for its zone of concern, given measurement
error.
German HICP has stood at 1.0% y/y or below in six of the last
seven months. In June HICP stood at only 0.7% y/y, while in October it
stood at 1.3%.
German prices will likely get a big boost in January due to tax
increases and social insurance contribution hikes due to take effect
then. However, this tax-hike inspired rise will come against the high
base created by sharp inflation increases posted early this year, so it
is unclear what the annual inflation rate will look like.
In November, the national consumer price index excluding oil
products rose 0.8% on the year in November after +0.9% y/y in October.
Price declines during November this year were noted mainly for
light heating oil (-9.8% m/m), motor fuels (-3.8% m/m), package vacation
(-3.9% m/m) and lodging costs (-6.4% m/m).
Prices for food and non-alcoholic beverages fell 0.4% m/m in
November.
Price increases were subdued, led by furniture and household
appliances (+0.2% m/m) and for health care products (+0.1% m/m). //www.marketnews.com
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