Germany Inflation In January Down

Germany Inflation In January Down by Adam Rosen last updated on February 23, 2024

Germany's Inflation In January Was Down To 3.1%

The latest data from official sources shows that the inflation rate in Germany during January 2024 was 3.1. The reading showed a speedier decline in inflation than forecasted by economists.

The decrease in German inflation is due to the recent price drops in energy products such as crude oil. If we look at the consumer prices in Germany, it showed an increase of 3.8% Y/Y during December.

France'S Inflation Is Down To 3.4%

According to ING, German inflation has decreased, so the chances of an ECB rate cut at an early date have increased. However, they added that many price pressures could still increase headline inflation.

France and Germany have already released their inflation data for the month &, and now the Eurozone's inflation is ahead. In France, the inflation during December was recorded at 4.1%, which declined in January to 3.4%.

Despite the sound data, some experts believe it is still being determined whether the inflation reading from Germany & France is enough to set the stage for the Eurozone's reading. For now, the expected inflation reading during January for the Eurozone is 2.8%.

So, if the Eurozone's inflation comes out to be 2.8%, it will mean more chances of an ECB rate cut at the April meeting.

During December, the Eurozone inflation was 2.9%, which means a decline of -0.1% is expected in January 2024. After the recent data, a policymaker from the ECB added that it looks like they have managed to control the greedy beast (inflation).

In the battle against inflation, the ECB has jacked the interest rate in the EU zone to historic highs. 2024 will likely be the year of rate cuts as similar moves are expected from other central banks.

According to Oxford Economics, the inflation reading for January has made them a lot more confident about April's rate cut by the ECB.