Business

German consumer prices inch up again in February

People carrying shopping bags walking in front of the Alexa Shopping Centre in Berlin Image copyright Getty Images
Image caption Germany's CPI inflation turned positive in February

German consumer prices rose in February, after January's fall.

Germany's federal statistics office Destatis said the annual rate of inflation rose 0.1% last month.

Prices fell into negative territory in January as Germany's consumer price index (CPI) dropped 0.4%.

But according to the harmonised index of consumer prices (HICP), the European Central Bank's preferred figure, Germany is yet to exit its deflationary period.

Germany's HICP index fell 0.1% in February.

The eurozone has struggled with downward pricing pressures for several months, with countries including Spain and Italy falling into deflation.

Eurozone inflation has been below the bank's target of 2%, or just below, since the start of 2013.

The low oil price continues to weigh on overall prices. The price of oil products fell 15.1% in Germany in February.

The ECB began its government bond buying programme on Monday.

It will buy bonds worth €1.14tn over the next 18 months in a move which is expected to boost prices in the eurozone.

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