Germany Inflation Rate Confirmed at 0.5% in January


Consumer prices in Germany rose 0.5 percent year-on-year in January of 2015, up from a 0.3 percent increase in the preceding month and matching preliminary estimates. It is the highest figure since May 2015, as cost of rents and food increased further while cost of energy declined at a slower pace.

Year-on-year, energy cost (total) decreased by 5.8 percent, following a  December. Prices were down the most for: heating oil (-24.3 percent), motor fuels (-5.7 percent). Charges for central and district heating also fell by 9.4 percent.

Cost of food and non-alcoholic beverages increased by 0.8 percent, after registering a 1.1 percent rise in the previous month. Prices rose markedly for fruit (+5.0 percent) and vegetables (+3.6 percent). Cost also increased for fish and fish products (+3.0 percent) and confectionery (+1.5 percent). In contrast, prices were considerably down for dairy products (-4.1 percent).

Cost of goods as a whole fell by 0.3 percent, following a 0.6 percent drop in the preceding month. Cost of services rose 1.2 percent in January, the same pace as in a month earlier. Among goods, lower prices were recorded for telephones (-3.9 percent) and coffee, tea  and cocoa (-2.1 percent). In contrast, prices rose for newspapers and periodicals (+4.9 percent) and tobacco products (+3.8 percent). Among services, higher cost were seen for net rents exclusive of heating expenses (+1.1 percent), catering services (+2.6 percent) and transport services (+1.6 percent). In contrast, prices were down for telecommunication services (-1.6 percent).

On monthly basis, consumer prices declined by 0.8 percent, following a 0.1 percent drop in December. Prices of energy (total) fell by 2.5 percent, especially to heating oil (–13.5 percent) and motor fuels (–4.0 percent). Prices also decreased for recreation and culture (-4.9 percent, including packege holidays : -10.2 percent), clothing and footwear (-4.3 percent) and housing, water, electricity, gas & other fuels (-0.2 percent). In contrast, cost rose for food (+0.1 percent), health (+0.4 percent), communication (+0.3 percent), education (+0.9 percent), retaurant and hotrls (+0.2 percent) and miscellaneous goods and services (+0.7 percent). 

Germany Inflation Rate Confirmed at 0.5% in January


Rida | rida@tradingeconomics.com
2/12/2016 8:45:49 AM