To: bobby beara who wrote (4773 ) 12/22/1999 3:00:00 AM From: Haim R. Branisteanu Read Replies (1) | Respond to of 5676
There is NO INFLATION!! Only 5.9% in Germany German Import Prices Increased 1.4% in November, Exceeding Forecasts By Christiane Buehler and Hellmuth Tromm German Import Prices Rose 1.4% in November and 5.9% in Year Wiesbaden, Germany, Dec. 22 (Bloomberg) -- Prices of goods imported into Germany rose for a 10th straight month in November, evidence that the euro's decline and rising oil costs are fueling inflation in Europe's largest economy. Import prices rose 1.4 percent from October and rose 5.9 percent from a year earlier, the Federal Statistics Office said. Economists surveyed by Bloomberg News forecast prices would climb 0.7 percent in the month and 5.2 percent in the year. Oil prices doubled this year and the euro declined 14 percent against the dollar. That's fed through to consumer prices. Annual inflation quickened to 1 percent in November from 0.2 percent in January. ''The effects of rising oil prices and the falling euro will last a few months, so we can expect import prices to increase further,'' said Christoph Hausen, an economist at Commerzbank AG. A report on December consumer prices, expected tomorrow, is likely to show that annual inflation accelerated to 1.1 percent from 1 percent, the third month in a row that it sped up. The ECB on Nov. 4 raised its benchmark refinancing rate by half a percentage point to 3 percent, the first increase since the euro's start on Jan. 1, as an economic revival in the 11- nation euro region takes hold. The bank aims to keep annual inflation in the area below 2 percent. Many analysts expect another rate increase in the first quarter of next year. The 17-member ECB council, which last week left interest rates unchanged, next meets Jan. 5. Import prices were mainly boosted by a 10 percent monthly increase in raw oil and oil products as well as an 8 percent rise in natural gas. In November, the price of crude oil rose 8.6 percent from October and almost doubled from a year earlier, the Hamburg-based HWWA economic research institute said. Excluding oil, import prices rose 0.7 percent in the month and rose 1.6 percent in the year. In October, overall import prices rose 0.4 percent in the month and 4.2 percent in the year. Export prices, the tag German companies put on goods shipped abroad, rose 0.2 percent in November, and advanced 1.1 percent in the year.