German Inflation Rate Confirmed at 0.7% in September


Consumer prices in Germany rose 0.7 percent year-on-year in September of 2016, compared to a 0.4 percent increase in August and matching preliminary estimates. It was the highest inflation rate since May 2015 as prices of food and services rose further while cost of energy fell less than in a month earlier .

Year-on-year, energy cost (total) decreased by 3.6 percent, following a 5.9 percent drop in August. Prices were down the most for: heating oil (-12.5 percent), motor fuels (-3.5 percent). Charges also fell for central and district heating (-8.1 percent) and gas (-3.2 percent), and solid fuel (-0.8 percent). In contrast, cost of electricity rose 0.7 percent. 

Cost of food and non-alcoholic beverages went up 0.5 percent, after gaining 0.8 percent in the previous month. Prices increased for edible fats and oils (+6.5 percent, including butter: +12.0 percent, and olive oil: (+9.4 percent), fruit (+3.5 percent), and fish and fish products (+3.1 percent). In contrast, price fell for dairy products (-6.0 percent), including curd: –17.8 percent; UHT milk: –11.7 percent; sliced cheese: –6.9 percent). 

Cost of goods as a whole fell by 0.1 percent, following a 0.6 percent drop in the preceding month. Cost of services rose 1.3 percent in  September, the same as of August. Among goods, lower prices were recorded for energy prices (-3.6 percent) , consumer electronic (-2.9 percent), and clothing (-1.0 percent).  In contast cost rose for cloth for  jewellery, clocks and watches (+2.9 percent), tobacco products (+3.3 percent), and newspapers and periodicals (+3.9 percent).

On a monthly basis, price of consumer went up 0.1 percent, after remaining unchanged in the prior month. Price rise for clothing (+6.6 percent) and footwear (+7.5 percent), energy prices  (+0.7 percent). While food prices remained nearly unchanged (+0.1 percent). In contrast, price decrease for  package holidays (–12.0 percent) and  air tickets (–1.9 percent).

The harmonized index of consumer prices (HICP) rose 0.5 percent from a year earlier, compared to a 0.3 percent increase in July. On a month-on-month basis, the index was flat, following a 0.1 percent fall in the preceding month and in line with consensus.

German Inflation Rate Confirmed at 0.7% in September


Destatis l Chusnul Ch Manan| chusnul@tradingeconomics.com
10/13/2016 7:26:27 AM