Germany Inflation Rate Confirmed at 0.3% in December


Consumer prices in Germany rose 0.3 percent year-on-year in December of 2015, down from a 0.4 percent increase in the preceding month and matching preliminary estimates. Prices of food eased while cost of energy fell less than a month earlier.

Year-on-year, energy cost (total) decreased by 6.5 percent, following a  7.5 percent drop in November. Prices were down the most for: heating oil (-23.3 percent) and motor fuels (-7.5 percent). Charges for central and district heating also fell by 9.2 percent.

Cost of food and non-alcoholic beverages increased by 1.1 percent, after registering a 1.8 percent rise in the previous month. Prices rose markedly for fruit (+6.7 percent) and vegetables (+6.7 percent). Cost also increased for fish and fish products (+2.4 percent) and confectionery (+2.5 percent). In contrast, prices were considerably down for dairy products (-3.9 percent).

Cost of goods as a whole fell by 0.6 percent, the same pace as in the preceding month, following a 0.8 percent. Cost of services rose 1.2 percent in December, unchanged from a month earlier. Among services, higher cost were seen for net rents exclusive of heating expenses (+1.0 percent), maintenance and repair of vehicle (+2.6 percent), catering services in restaurants, cafes and the like (+2.8 percent), hairdresser services and other services for personal care (+3.6 percent). In contrast, cost of telecommunications services fell by 1.5 percent.

On monthly basis, consumer prices declined by 0.1 percent, following a 0.1 percent increase in November. Prices of energy (total) fell by 2.9 percent, especially to heating oil (–14.5 percent) and motor fuels (–4.4 percent). Prices also decreased for food (-0.4 percent) and clothing and footwear (-2.7 percent). In contrast, cost rose for package holidays (+13.7 percent).

The harmonized index of consumer prices (HICP) increased by 0.2 percent year-on-year in December, following a 0.3 percent rise in November. On month-on-month basis, the index rose remained unchanged, after registering a 0.1 percent rise in a month earlier. 

For full year of 2015, annual average consumer prices stood at 0.3 percent.

Germany Inflation Rate Confirmed at 0.3% in December


Destatis l Rida Husna | rida@tradingeconomics.com
1/19/2016 8:06:49 AM