BERLIN, Jan 30 (Reuters) - German annual inflation accelerated in January but remained below the target set by the European Central Bank, data showed on Thursday, highlighting the challenge facing new ECB President Christine Lagarde.
German consumer prices, harmonised to make them comparable with inflation data from other European Union countries, rose by 1.6% year-on-year after posting a 1.5% increase in the previous month, the Federal Statistics Office said.
Despite the acceleration, inflation remained below the ECB’s target level of close to but below 2% for the ninth month in a row.
The reading was below a Reuters forecast for 1.7%.
On the month, EU-harmonised prices fell by 0.8% in January, in line with the consensus forecast. (Reporting by Joseph Nasr Editing by Michelle Martin)