German Inflation Exceeds Forecasts as Draghi Eyes Brexit Cluesby
Inflation rate rises to 0.4%, exceeding economists’ forecasts
Euro-area inflation data for July to be published on Friday
German inflation accelerated more than economists estimated in July, a positive signal for policy makers struggling to meet their goal for price growth in the 19-nation euro area.
The rate rose to 0.4 percent from 0.2 percent in June, the Federal Statistics Office in Wiesbaden said on Thursday. Economists in a Bloomberg survey predicted a pickup to 0.3 percent. Prices increased 0.4 percent from the previous month.
The report from Europe’s largest economy comes a week after European Central Bank President Mario Draghi said he won’t hesitate to add fresh stimulus if the U.K.’s vote to leave the European Union harms growth and prices in the bloc. A central bank survey released on Friday showed professional forecasters lowered their forecast for euro-area inflation in 2017 and the following year. The ECB will publish its own projections in September.
Before the German data, economists estimated that euro-area inflation held steady at 0.1 percent in July. Eurostat will release those figures on Friday.