German Inflation Confirmed at 1.5% in May


Consumer prices in Germany rose by 1.5 percent in May 2013 compared with May 2012. In March 2013, the inflation rate as measured by the consumer price index had been +1.4 percent and in April +1.2 percent. The biggest upward pressure came from food prices, up 5.4 percent yoy.

Food has an increasingly determining effect on the inflation rate. Prices increased considerably on a year earlier especially for vegetables (+12.1 percent) and fruit (+9.2 percent) as well as edible oils and fats (+9.7 percent). Consumers had to pay noticeably more than a year earlier for meat and meat products (+5.6 percent) as well as for dairy products and eggs (+4.3 percent). 

Energy prices were up 1.6 percent in May 2013 on May 2012. While the prices of most household energy products rose markedly (for example, electricity: +12.4 percent), prices of mineral oil products were down 4.3 percent (of which motor fuels: −3.7 percent; heating oil: −5.9 percent). Not considering energy prices, the year-on-year inflation rate in May 2013 would have been +1.7 percent. 

Total goods prices were up 1.9 percent in May 2013 on May 2012, with price increases being largest for non-durable consumer goods (+2.5 percent), which was mainly due to the development of food prices. Total service prices rose by 1.4 percent in May 2013 compared with May 2012. 

The harmonised index of consumer prices for Germany, which is calculated for European purposes, rose by 1.6 percent in May 2013 on May 2012 and was thus again below the two-percent mark that is important in terms of monetary policy. Compared with April 2013, the index rose by 0.3 percent in May 2013.

German Inflation Confirmed at 1.5% in May


Destatis | Nuno Fontes | nuno@tradingeconomics.com
6/12/2013 9:09:51 AM