German inflation unexpectedly ticks higher in January

(Sharecast News) - German inflation unexpectedly ticked higher in January, according to preliminary data released on Friday by Destatis. Consumer prices rose 2.1% on an annual basis, up from 1.8% in December and versus expectations for them be unchanged.

Core inflation, which excludes food and energy, increased to 2.5% from 2.4%.

Carsten Brzeski, global head of macro at ING, said: "The available regional state data shows that the increase in inflation was mainly driven by less favourable energy price effects, but also sharp monthly increases in food prices and health care costs; the latter probably being a result of increased health care insurance costs."