German Inflation Confirmed at 15-Month Low in February


German consumer prices rose by 1.4 percent year-on-year in February 2018, following a 1.6 percent rise in the prior month and matching the preliminary estimate. It was the lowest inflation rate since November 2016, due to a marked slowdown in cost of food and energy.

In February, prices of goods rose by 1.0 percent year-on-year, compared to 1.5 percent in the preceding month, as prices of energy and food went up much softer. Prices also increased for newspapers and periodicals (4.7 percent) and tobacco products (4.5 percent). Meantime, cost fell for information processing equipment (-3 percent) and consumer electronics (-2.4 percent). 

Energy prices were up 0.1 percent, after a 0.9 percent rise in a month earlier. Prices increased mainly for electricity (1.5 percent) and charges for central and district heating (1.3 percent). In contrast, consumers paid less for gas (-1.4 percent); motor fuels (-0.6 percent) and heating oil (-0.2 percent).

Cost of food went up by 1.1 percent (from 2.9 percent in January). Price increases were observed for dairy products (10.2 percent; edible fats and oils (8.9 percent) and fruit (6.7 percent). On the other hand, vegetable prices were sharply down (-17.1 percent).

Cost of services rose 1.6 percent, the same as in January, with prices rising for: net rents exclusive of heating expenses (1.6 percent); maintenance and repair of vehicles (3.1 percent) and catering services (2.2 percent). Meantime, consumers paid less for  telecommunication services (-0.8 percent).

On a monthly basis, the consumer price index went up by 0.5 percent, after a 0.7 percent fall in January. Prices advances for: package holidays (10.3 percent); cut flowers (4.9 percent); clothing (3.4 percent) and beer (1.8 percent). By contrast, cost fell for energy (-0.5 percent) and food (-0.2 percent). 

The harmonised index of consumer prices rose by 1.2 percent from the previous year and by 0.5 percent month-over-month.

German Inflation Confirmed at 15-Month Low in February


Destatis l Rida Husna | rida@tradingeconomics.com
3/14/2018 7:52:43 AM