The weighted average of prices for a predetermined basket of consumer goods and services. This basket is representative of the goods and services that the average German household purchases. The CPI takes into account the relative importance of each item in the basket and creates a weighted average of the prices. Consumer Prices are compared to previous figures to gauge changes in the cost of living over time. The headline number is released as the percentage change from the previous quarter or year.

The German CPI is estimated based on the CPI results from the six German states (Saxony, Baden Wuerttemburg, Brandenburg , North Rhine-West, Bavaria , and Hesse ).

NOTE : However, it is worth noting that the Free State of Saxony is probably the most significant region to consider. It is listed as "Objective 1" development region by the European Union and it can receive up to 30% in investment subsidies until 2013. That is why Saxony CPI tends to hold a greater significance than other states. Also, keep in mind that the Germany economy is by far the largest in the European region. So, the German CPI provides very useful insight in determining overall Euro-zone inflationary pressures.

Relevance: Tends to move markets on release
Release Schedule: 6:00 (GMT); monthly, first week of the month
Revision Schedule: 6.00 (GMT); between 10th to 15th of every month
Source of Report: Statistische Ämter des Bundes und der Länder
Web Address: http://www.statistik-portal.de/Statistik-Portal/
Address of Release: http://www.statistik-portal.de/Statistik-Portal/en/en_inhalt21.asp