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German inflation roars back in January to 11-month high
Thursday, January 28, 2021
BERLIN -- German annual consumer prices turned positive and rose by far more than expected in January, the Federal Statistics Office said today, attributing a rise in sales tax and the minimum wage as factors behind the increase.
Consumer prices, harmonised to make them comparable with inflation data from other European Union countries, rose by 1.6% year-on-year after declining by 0.7% in December.
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January's reading was the highest since 1.7% last February, the Statistics Office told Reuters. It compared with a Reuters forecast for a rise of 0.5%.
"In addition to the changes in value-added-tax rates, the development of consumer prices may also be influenced by other factors such as the CO2 price and the increase in the statutory minimum wage from January 2021," the Statistics Office said in a statement. ...
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