BERLIN- German inflation unexpectedly fell in February, the statistics office said on Friday, pointing to a downward revision of euro zone figures that would back further policy easing by the European Central Bank.
German inflation fell to 2.6 percent in February, revising down preliminary data which had showed annual inflation, harmonized to compare with other European Union countries, was flat in February at 2.8 percent.
“This is good news for the ECB,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. “Caution is nevertheless advised,” he added.
That was because the relatively low rise in inflation was based on a below-average increase in goods prices, de la Rubia said. However, these could rise in the course of a trade war if the EU defends itself more strongly against imports from the US and China, he said.
