German inflation holds steady amid gloomy outlook for 2019 growth
Inflation in Germany remained flat in January as the eurozone’s largest economy issued a gloomy forecast for 2019 growth.
Consumer prices in Germany rose 1.7 per cent year-on-year, holding steady from the rate in December and in line with estimates from economists polled by Reuters.
The figures came shortly after the German government cut its growth forecast for 2019 from 1.8 per cent to one per cent, meaning the country could suffer its slowest rate of growth for six years.
German economy minister Peter Altmaier said the slowdown was a result of headwinds from Brexit and international trade disputes.
The outlook is the latest blow for the German economy, which narrowly avoided a technical recession at the end of 2018.
Business confidence among German exporters fell to a three-year low of 5.9 in January, with a sharp decline in outlook for the automotive and chemical industries.