Germany Inflation Confirmed at 4-Month High


Consumer prices in Germany rose 0.3 percent in October of 2015, after remaining unchanged in the preceding month and matching preliminary estimates. Cost of food and services increased at a faster pace while prices of energy dropped less than a month earlier.

Year-on-year, energy cost (total) decreased by 8.6 percent, following a 9.3 percent drop in September. Prices were down for: heating oil (-24.5 percent), motor fuels (-13.1 percent) and household energy (-6.5 percent).

Cost of food and non-alcoholic beverages increased by 1.3 percent, after registering a 0.9 percent rise in the previous month. Prices rose markedly for vegetables (+13.1 percent, including potatoes: +30.7 percent), fruits (+9.7 percent, including apples : +10.9 percent), fish and fish products (+2.1 percent) and confectionery (+1.8 percent). Prices were considerably down for dairy products (-6.0 percent, including UHT milk: -12.1 percent; sliced cheese: -9.9 percent).

Cost of goods as a whole fell by 0.8 percent, following a 1.3 percent drop in September. Cost of services rose 1.2 percent in October, slightly up from a 1.1 percent rise in a month earlier. Among goods, lower prices were recorded for consumer electronics (-2.9 percent) and telephones (-5.2 percent). Consumers also had to pay more for newspapers and periodicals (+6.0 percent), tobacco products (+4.3 percent) and information processing equipment (+5.2 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 (+3.6 percent) and catering services in restaurants, cafes and the like (+3.0 percent). In contrast, cost of services declined for air tickets (-2.8 percent) and telecommunication services (-1.3 percent.

On monthly basis, consumer prices remained unchanged in October, following a 0.3 percent drop in September. Prices decreases were  seen for motor fuels (–1.6 percent, including supergrade petrol: -2.0 percent; diesel fuel: -0.6 percent) and heating oil (-1.4 percent). In contrast, prices increases were seen for vegetables (+2.1 percent), edible oils and fats (+1.3 percent, including butter: +4.7 percent) and dairy products (+1.1 percent, including UHT milk: +3.7 percent; yoghurt: +1.9 percent). Prices o footwear also rose 0.5 percent.

The harmonized index of consumer  prices (HICP) increased by 0.2 percent in October of 2015 over the same month last year, following a 0.2 percent fall in September. Compared with the a month earlier, the index remained unchanged, after a 0.3 percent drop in a month earlier

Germany Inflation Confirmed at 4-Month High


Destatis l Rida Husna | rida@tradingeconomics.com
11/12/2015 7:44:20 AM