By Maria Martinez
BERLIN (Reuters) – Inflation fell in five important German states in January, preliminary data showed on Friday, suggesting Germany’s national inflation rate could decline this month, although it was expected to remain unchanged.
In Saxony, the inflation rate fell in January to 2.4% from 3.2% in the previous month, in Brandenburg it fell to 2.3% from 2.4%, in Baden-Wuerttemberg it fell to 2.3% from 2.6%, in North Rhine-Westphalia it fell to 2.0% from 2.5% and in Bavaria it fell to 2.5% in January from 3.0% in December.
In Hesse, however, the inflation rate increased slightly to 2.5% from 2.4% in the previous month.
Economists polled by Reuters forecast a harmonised national inflation rate in Germany – the euro zone’s largest economy – of 2.8% in January, unchanged from the previous month.
National figures will be released later on Friday.
The German data comes ahead of the euro zone inflation release on Monday. Inflation in the bloc is expected at 2.4% in January, unchanged from the previous month, according to economists polled by Reuters.
The European Central Bank cut interest rates on Thursday and policymakers guided for a further reduction in March as concerns over lacklustre economic growth supersede worries about persistent inflation.
(Reporting by Maria Martinez, Editing by Miranda Murray)
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