German CPI Declines For 1st Time Since January 2015


Consumer prices in Germany fell 0.1 percent year-on-year in April of 2016, following a 0.3 percent rise in March and matching preliminary estimates. It is the first decline since January 2015 as cost of energy dropped further while cost of food and services eased.

Year-on-year, energy cost (total) decreased by 8.5 percent, following a 8.9 percent drop in March. Prices were down the most for: heating oil (-28.6 percent), motor fuels (-12.9 percent). Charges also fell for central and district heating (-9.3 percent) and solid fuel (-3.8 percent). In contrast, cost of electricity rose 0.8 percent. 


Cost of food and non-alcoholic beverages increased by 0.5 percent after registering a 1.1 percent rise in the previous month. Prices rose for fruit (+2.4 percent), vegetables (+5.1 percent) fish and fish products (+3.3 percent) and bread & cereals. In contrast, prices were down for edible oils and fats (-6.9 percent,  including butter: –14.4 percent) and dairy products (-4.0 percent, including sliced cheese: -9.7 percent,  cream: –7.6 percent). 

Cost of goods as a whole fell by 1.0 percent, following a 1.2 percent drop in the preceding month. Cost of services rose 0.8 percent in April from 1.6 percent in a month earlier. Among goods, lower prices were recorded for: coffee, tea  and cocoa (-3.3 percent) and personal care products (-2.1 percent). In contrast, prices rose for jewelry, clocks and watches (+4.8 percent) and tobacco products (+4.3 percent). Among services, higher cost were seen for net rents exclusive of heating expenses (+1.0 percent), social facilities (+3.6 percent), recreational and sporting services (+2.8 percent), transport association tickets (+2.6 percent) and insurance services (+2.6 percent). In contrast, prices were down for package holidays (-8.8 percent), prices of air tickets (-2.6 percent) and telecommunication services (-1.6 percent).

On a monthly basis, consumer prices fell 0.4 percent, following a 0.8 percent rise in March and in line with expectations. The decrease in services prices (–1.2 percent) was partly offset by the price increase for goods (+0.6 percent). Within product groups, there were marked differences. While prices of heating oil fell  (–1.0 percent), prices of motor fuels rose (+3.0% percent). For food, considerable price decreases were recorded for strawberries, raspberries and other berries (–10.6 percent). In contrast, prices of carrots, pulses, asparagus and the like were up (+4.7 percent).

The harmonized index of consumer prices (HICP) fell 0.3 percent year-on-year in April, following a 0.1 percent rise in March. On a month-on-month basis, the index also dropped by 0.5 percent after gaining 0.8 percent in a month earlier.

German CPI Declines For 1st Time Since January 2015


Destatis l Rida | rida@tradingeconomics.com
5/13/2016 12:28:22 PM