German Inflation Lower than Expected in January

By FeaturesDow Jones Newswires

German inflation came in lower than expected in January amid sharp discounts of package holidays.

Germany's annual inflation rate--measured by harmonized European Union standards--fell to 1.4% from 1.6% in December, the Federal Statistical Office said Tuesday.

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Economists polled by The Wall Street Journal had forecast a slight increase to 1.7%.

The outcome is also below the European Central Bank's target, because the ECB aims to keep inflation in the eurozone at just below 2%.

The statistics office said that energy prices in Germany were up 0.9% from January 2017, while food prices increased 3.1%. It will publish a detailed inflation report on Feb. 14.

Write to Nina Adam at nina.adam@wsj.com

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January 30, 2018 08:36 ET (13:36 GMT)

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