German inflation rises to 1.9 percent in January

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German inflation rose in January to 1.9 percent from 1.7 percent in December, provisional figures released on Thursday by the federal statistics office showed.

As in previous months, the cost of energy, fruits and vegetables were primarily responsible for the increase, the Destatis office said.

On a monthly basis however, consumer prices declined by 0.5 percent, which is often the case in January, after the Christmas season.

The provisional figure was calculated from data provided by six of Germany's 16 states, or Laender.

In three, North Rhine-Westphalia, Baden-Wuerttemberg and Bavaria, inflation surpassed 2.0 percent, the target established by the European Central Bank.

"All in all, current conditions let us expect a clear upward trend in the core rate throughout this year," UniCredit economist Alexander Koch commented.

"But, barring a renewed jump in commodity prices, we do not expect a further strong acceleration of the headline rate. We forecast inflation to average 2.2 percent in 2011," he added

© 2011 AFP

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