German Consumer Prices Confirmed Unchanged in February


Consumer prices in Germany remained unchanged from a year earlier in February of 2016, following a 0.5 percent increase in January and matching preliminary estimates. It is the lowest figure since September 2015, as a further decline in cost of energy offset an increase in prices of food and cost of rents.

Year-on-year, energy cost (total) decreased by 8.5 percent, following a 5.8 percent drop in January. Prices were down the most for: heating oil (-33.6 percent), motor fuels (-11.0 percent). Charges also fell for central and district heating (-9.4 percent) and gas (-2.5 percent).

Cost of food and non-alcoholic beverages increased by 0.7 percent, after registering a 0.8 percent rise in the previous month. Prices rose markedly for fruit (+5.8 percent), vegetables (+1.7 percent) and fish and fish products (+2.7 percent). In contrast, prices were considerably down for dairy products (-3.9 percent).

Cost of goods as a whole fell by 1.1 percent, following a 0.3 percent drop in the preceding month. Cost of services rose 0.9 percent in February from 1.2 percent in a month earlier. Among goods, lower prices were recorded for: coffee, tea  and cocoa (-3.0 percent) and personal care products (-1.3 percent). In contrast, prices rose for newspapers and periodicals (+4.7 percent), tobacco products (+3.8 percent) and jewelry, clocks and watches (+6.7 percent). Among services, higher cost were seen for net rents exclusive of heating expenses (+1.1 percent), catering services (+2.4 percent) and transport services (+1.5 percent). In contrast, prices were down for package holidays (-5.7 percent).

On a monthly basis, consumer prices rose 0.4 percent,  following a 0.8 percent drop in January. Prices of energy (total) fell by 0.9 percent, especially for: both mineral oil products (–2.2 percent, of which supergrade petrol: –2.6 percent) and household energy (–0.3 percent, of which heating oil: –0.5 percent; charges for central and district heating: –0.8 percent). In contrast, cost rose for food (+0.7 percent), clothing and footwear (+0.8 percent), health (+0.2 percent), education (+0.1 percent), retaurant and hotels (+0.1 percent) and miscellaneous goods and services (+0.2 percent). 

The harmonized index of consumer prices (HICP) fell by 0.2 percent year-on-year in February, following a 0.4 percent rise in January. On a month-on-month basis, the index rose 0.4 percent, after declining 0.2 percent in a month earlier. 

German Consumer Prices Confirmed Unchanged in February


Destatis l Rida Husna | rida@tradingeconomics.com
3/11/2016 8:09:52 AM