German Inflation Rate Confirmed at 0.4% in August


Consumer prices in Germany rose 0.4 percent year-on-year in August of 2016, the same pace as in July and matching preliminary estimates. While cost of food and services rose at a slower pace, cost of energy fell less than in a month earlier.

Year-on-year, energy cost (total) decreased by 5.9 percent, following a 7.0 percent drop in July. Prices were down the most for: heating oil (-15.0 percent), motor fuels (-9.1 percent). Charges also fell for central and district heating (-8.6 percent) and gas (-3.1 percent). In contrast, cost of electricity rose 0.7 percent. 

Cost of food and non-alcoholic beverages went up 0.8 percent, after gaining 1.0 percent in the previous month. Prices increased for vegetables (+5.3 percent, including potatoes: +10.9 percent), fruits (+4.2 percent), edible fats and oils (+5.5 percent, including butter: +7.8 percent) and fish and fish products (+3.4 percent). In contrast, prices were down for dairy products (-6.4 percent).

Cost of goods as a whole fell by 0.6 percent, following a 0.7 percent drop in the preceding month. Cost of services rose 1.3 percent in August, compared to a 1.4 percent rise in a month earlier. Among goods, lower prices were recorded for coffee, tea  and cocoa (-4.1 percent), footwear (-2.0 percent) abd clothing (-1.8 percent). In contrast, prices rose for newspapers and periodicals (+4.1 percent) and tobacco products (+3.3 percent). Among services, higher cost were seen for net rents exclusive of heating expenses (+1.2 percent), social facilities (+4.1 percent), insurance services (+2.8 percent) and catering services (+2.0 percent). In contrast, prices were down for telecommunication services (-1.5 percent) and package holidays (-0.5 percent).

On a monthly basis, consumer prices were flat, after gaining 0.3 percent in a month earlier and in line with expectations.

The harmonized index of consumer prices (HICP) rose 0.3 percent from a year earlier, compared to a 0.4 percent increase in July. On a month-on-month basis, the index declined by 0.1 percent, following a 0.4 percent rise in the preceding month.

German Inflation Rate Confirmed at 0.4% in August


Destatis l Rida Husna | rida@tradingeconomics.com
9/13/2016 6:46:19 AM