German Inflation Confirmed at 0.1% in February


German annual inflation went back to positive territory in February of 2015, following a 0.4 percent drop in the previous month, as prices of energy and food declined at a slower pace.

Year-on-year, energy cost decreased by 7.3 percent, following a 9 percent fall in January. Prices were down for: heating oil (-22.0 percent), andmotor fuels (-12.7 percent), gas (-1.3 percent) and electricity (-0.1 percent).

Cost of food and non-alcoholic beverages decreased by 0.2 percent, following a 1.0 percent decline in the preceding month (including food -0.4 percent). Prices declined for edible fats and oil (-9.7 percent) and vegetables (-0.8 percent). Consumers had to pay less for dairy products and eggs (-2.3 percent) and meat (-1.0 percent). In contrast, prices increased for confectionery (+2.9 percent).

Cost of goods as a whole fell by 1.4 percent while cost of services increased by 1.4 percent. Among goods, lower prices were recorded for consumer electronics (-6.7 percent) and telephones (-9.9 percent). Consumers had to pay higher prices than a year earlier, for newspapers and periodicals (+5.8 percent) and coffee, tea and cocoa (+9.2 percent). Among services, higher cost were seen for net rents exclusive of heating expenses (+1.3 percent), passenger transport (+10.1 percent), hairdresser services and other services for personal care (+3.3 percent) and  recreational and sporting services (+2.9 percent). In contrast, cost of telecommunication services declined further by 1.1 percent.

On a monthly basis, consumer prices rose 0.9 percent in February. Prices increases were seen for most of categories except for furnishing, household equipment (-0.1 percent) and communication (-0.1 percent). Cost of transport rose the most by 1.0 percent, followed by clothing and footwear (+0.9 percent); food and non-alcoholic beverages (0.7 percent); housing, water, electricity, gas and other fuels (+0.4 percent); health (+0.4 percent); miscellaneous goods and services (+0.4 percent); restaurants and hotels (+0.3 percent) and education (+0.1 percent). Among food and non-alcoholic beverages, prices of vegetables increased the most by 4.6 percent, followed by fruit (1.6 percent). In addition, prices of meat remained stable. Among utilities, prices rose the most for heating oil (+13.6 percent). Among transport, prices increased for diesel fuel (+3.9 percent) and petrol (+3.7 percent).

The harmonized index of consumer  prices (HICP) dropped by 0.1 percent in February of 2015 over the same month last year. Compared with the previous month, the index was up  1.0 percent.

German Inflation Confirmed at 0.1% in February


Destatis l Rida Husna l rida@tradingeconomics.com
3/12/2015 9:59:11 AM