German inflation slows more than expected in February to its lowest level in the last 15 years. According to the preliminary data of the Federal Statistical Office, it will accelerate by 1.4% this month. This is slightly above expectations of analysts for 1.3%. This is also the lowest value since November 2016.
The Harmonized Consumer Prices Index has grown by 1.2% annually and 0.5% since January 2018 when it was 1.4%. This is also below the forecasts of experts expecting an increase of 0.6%.
The food prices in the country increased by 1.1% in February. By comparison, in the previous month they were up by 3.1%. For energy, the increase is 0.1%, compared with 0.9% in January.
The inflation data in the largest European economy is closely monitored as it affects the monetary policies of the European Central Bank (ECB).
Earlier were published the preliminary data for the individual German provinces, which showed that inflation at regional level is also slowing down. In the most densely populated German province of North Rhine-Westphalia, the annual inflation increased by 1.3% in February from 1.5% in the previous month. Declines are also recorded in Baden-Wuerttemberg, Bavaria, Hesse, Saxony and Brandenburg.
This revealed the difficult battle of the ECB to bring Eurozone inflation closer to the threshold of less than 2%.
The Berlin government expects the consumer price index to slow down to 1.7% this year from 1.8% in 2017.