Germany Inflation Rate Slows in March

Consumer prices in Germany rose by an annual 1.0 percent in March of 2014, matching the preliminary estimate, and decelerating from 1.2 percent in February. The last time an inflation rate of 1.0 percent was observed was in August of 2010.

As in the previous months, the low inflation rate was due to falling mineral oil product prices (-4.2 percent, of which heating oil: -7.5 percent; motor fuels: –3.1 percent). The prices of energy in general were down 1.6 percent on a year earlier. The general trend of falling energy prices was contrasted especially by increasing electricity prices (+1.9 percent).

The rise in food cost (+2.2 percent) was again higher than the overall inflation rate. Compared with the previous months, however, the increase in prices slowed down markedly. In February 2014, a year-on–year change of +3.5 percent was recorded.  

The prices of goods in general were up 0.6 percent yoy. An upward effect was exerted not only by food but also, for example, by newspapers and periodicals (+5.6 percent) and alcoholic beverages and tobacco products (+3.8 percent). Cost of medical products, too, were higher than a year earlier (+1.8 percent).

Declining prices were recorded not only for energy but also, among other things, for coffee, tea and cocoa (–2.7 percent), consumer electronics (–5.2 percent), information processing equipment (–7.2 percent) and telephones (–8.7 percent).

From February to March, the consumer price index rose by 0.3 percent. Seasonal price rises were observed especially for clothing and footwear (+4.8 percent). Prices of package holidays were slightly up, too (+1.4 percent). A downward effect on the month-on-month rate of change was exerted by price decreases for energy (–0.3 percent) and food (-0.4 percent).

Germany Inflation Rate Slows in March

DESTATIS | Joana Taborda |
4/11/2014 9:06:57 AM