Inflation Procasting in Germany

Introduction

Inflation is the widespread and sustained increase in prices of goods and services in a country. To measure the growth of inflation indices are used, which reflect the percentage growth of a weighted basket of goods. The index measuring infación is the Consumer Price Index (CPI) in Mexico is called INPC (National Index of Consumer Prices). This index measures the percentage increase in the prices of a basket of goods and services purchased by a typical consumer in the country. When we talk about inflation in Germany, we refer often to the consumer price index, abbreviated as CPI. German CPI shows the price development of a defined set of products and services purchased by households for consumption in Germany.

Discussion

Economic Performance Overview of Germany

The economy in Germany is the most powerful economy in Europe and is on the gross domestic product, the fourth largest worldwide (as of 2010). The GDP is € 2407.2 billion (2009). Automotive, mechanical engineering, electrical engineering, chemistry, environmental technology, precision engineering, optics, medical technology, biotechnology and genetic engineering, nanotechnology, aerospace, logistics are the key sectors that report the highest financial and economic productivity for the sector. Germany is an attractive location for foreign investors. The 500 largest companies in the world are present, a total of 45,000 foreign companies. Foreign direct investment (inventory for year 2007) is 630 billion U.S. dollars.

Slow Growth of Production

Annual growth in producer prices in Germany in February was the lowest since June 2010. Increase in producer prices again this month contributed to a sharp rise in energy prices. According to the data, producer prices in February rose 0.4% compared with the previous month and by 3.2% compared with February 2011. Monthly price growth was slightly below the forecast of analysts who had expected growth of 0.5%. Annual price growth has coincided with expectations, but was the lowest since June 2010, when producer prices rose by 1.7%. Rising prices for intermediate products, which are necessary for the production process, in February was 0.5% compared to the same period last year.

Import prices

The prices for imported products in January 2012 were 3.7% higher than a year earlier. In December 2011, the change to the previous year had amounted to +3.9% and +6.0% in November. A significant proportion of the price change for the same month last year was higher by 17.4% ie the prices for the import of energy. Excluding petroleum and petroleum products import price index in January 2012, only 1.6% above the level of January 2011 (+0.7% compared to December 2011).

Consumer Prices

In January, the consumer price index for Germany declined significantly to 0.4% last month. Compared with January 2011 the consumer prices rose by 2.1%. In December 2011 the annual inflation rate was 2.1%. The inflation rate in Germany in December 2011 amounted to 2.1% (2.4% in November), the Federal Statistics Office calculated in advance. Because this increase over the same month last year, with rising energy and food prices and for the first time by increases in ...