German Inflation Eases As Estimated

(RTTNews) - Germany's inflation eased as estimated in February as the increase in food prices slowed noticeably, final data from Destatis showed on Wednesday.

The consumer price index posted an annual growth of 1.9 percent in February, in line with the flash estimate. The pace of growth weakened from 2.1 percent seen in January.

"The increase in consumer prices slowed slightly in February," Destatis President Ruth Brand said.

"In particular, the rise in food prices eased significantly and had a downward effect on the development of prices, while services continued to drive up inflation," said Brand.

EU harmonized inflation softened slightly to 2.0 percent in February from 2.1 percent in January. The rate matched the provisional estimate published on February 27.

Data showed that food prices moved up at a slower pace of 1.1 percent after climbing 2.1 percent in January. Meanwhile, energy prices dropped 1.9 percent, following a 1.7 percent decrease in January. Services prices were up 3.2 percent in February.

Excluding food and energy, core inflation slowed to 2.3 percent from 2.5 percent in January. On a monthly basis, consumer prices climbed 0.2 percent, as initially estimated, following January's 0.1 percent gain. The harmonized index of consumer prices rebounded 0.4 percent, matching estimate, after falling 0.1 percent in January.