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Renae Dyer Sharecast News
29 Sep, 2015 12:59 29 Sep, 2015 13:51

German inflation slows more than expected in September

German inflation fell to zero growth in the year to September from a 0.2% increase in August, the Federal Statistics Office revealed on Tuesday.

Analysts had been expecting a 0.1% year-on-year rise, adding pressure on the European Central Bank which is targeting Eurozone inflation of just below 2%.

The harmonised consumer price index for Germany was down 0.2% in September 2015 year-on-year, compared with a 0.1% increase in August and estimates of 0%.

"We expect German inflation to remain far beneath the ECB’s target for the Eurozone as a whole of “below, but close, to 2%” over the medium term," said Jessica Hinds, European economist at Capital Economics.

Today’s data add weight to our view that the ECB will need to size of its Asset Purchase Programme, perhaps as soon as December."

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