Germany Inflation Confirmed at 0.2% in August


Consumer prices in Germany increased 0.2 percent year-on-year in August of 2015, the same pace as in the previous month and matching preliminary estimates. It is the lowest inflation rate since February, as a further decline in energy prices offset an increase in cost of food and services.

Year-on-year, energy cost (total) decreased by 7.6 percent, following a 6.2 percent drop in the preceding month. Prices were down for: heating oil (-27.6 percent), motor fuels (-9.5 percent), central and district heating (-6.5 percent) and electricity (-1.0 percent). 

Cost of food and non-alcoholic beverages increased by 0.6 percent, after registering a 0.4 percent rise in July. Prices rose markedly for vegetables (+9.3 percent, including potatoes: +22.7 percent), fruits (+6.6 percent), fish and fish products (+2.4 percent) and confectionery (+1.7 percent). Prices were considerably down for dairy products (-6.9 percent), edible fats and oils (-7.0 percent) and edible oils and fats (-7.0 percent, including butter:-12.5 percent).

Cost of goods as a whole fell by 0.9 percent, following a 0.7 percent drop in July. Cost of services rose 1.2 percent in August, after registering a 1.1 percent rise in the preceding month. Among goods, lower prices were recorded for telephone (-4.2 percent), consumer electronics (-4.3 percent). In contrast, consumers had to pay more for coffee, tea and cocoa (+3.7 percent), newspapers and periodicals (+6.0 percent) and tobacco products (+5.6 percent). Among services, higher cost were seen for net rents exclusive of heating expenses (+1.1 percent), passenger transport (of which taxi ride +13.4 percent), hairdresser services and other services for personal care (+3.4 percent) and catering services in restaurants, cafes  (+3.0 percent). In contrast, cost of services declined for air tickets (-4.5 percent) and other services (-6.2 percent, largely due to a legal amendment regarding real estate agencies, which took effect in June, 1, 2015).

On a monthly basis, consumer prices remained unchanged, following a 0.2 percent rise in July. Prices increases were seen for clothing (+4.2 percent), mainly due to a gradual changeover to the autumn/winter collection. In contrast, price declined for: food (-0.3 percent, with cost of edible oils and fats dropping by 2.3 percent and vegetables by 0.8 percent); housing, water, electricity, gas and other fuels (-0.2 percent, with cost of household energy falling by 1.0 percent, including heating oil: -6.2 percent); transport (-1.0 percent, with prices of motor fuels declining by 4.2 percent, including  supergrade petrol: –4.1 percent, diesel fuel: –4.3 percent); communication (-0.2 percent) and education (-0.2 percent.

The harmonized index of consumer  prices (HICP) increased by 0.1 percent in August of 2015 over the same month last year. The index remained unchanged compared with the previous month.

Germany Inflation Confirmed at 0.2% in August


Destatis l Rida Husna | rida@tradingeconomics.com
9/11/2015 10:26:35 AM