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German Inflation Holds Steady as Economy Battles Headwinds

Published 01/03/2019, 12:07 am
Updated 01/03/2019, 12:41 am
German Inflation Holds Steady as Economy Battles Headwinds

(Bloomberg) -- Inflation in Germany held steady in February as the economy and the broader euro area grapple with an ongoing slowdown.

Consumer prices rose an annual 1.7 percent, matching the median forecast in a Bloomberg survey.

Inflation data for the 19-nation euro area is due on Friday. Economists forecast an acceleration to 1.5 percent from 1.4 percent, with the core rate staying at 1.1 percent.

Thursday’s report comes a week before European Central Bank policy makers gather to assess the economic outlook after Italy slipped into recession and Germany barely avoided the same fate. Bundesbank President Jens Weidmann said on Wednesday that withdrawing crisis-era stimulus remains the baseline plan because key factors underpinning growth remain intact and weakness should eventually fade.

Germany’s Federal Labor Agency will publish its February jobs report on Friday. Economists forecast the number of people out of work to decline by 5,000.

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