Germany Inflation Confirmed at 0.6% in November


German annual inflation rate was recorded at 0.6 percent in November of 2014, down from 0.8 percent increase in the previous four months and matching preliminary estimates.

Year-on-year, energy prices fell 2.5 percent. Prices were down in particular for heating oil (-9.8 percent) and motor fuels (-4.5 percent). In contrast, electricity prices continued to rise (1.9 percent).

Food prices  remained unchanged from November of 2013. The rise in prices was less pronounced especially for dairy products (+1.5 percent; October 2014: +6.5 percent). The prices of edible fats and oils were markedly lower than a year earlier (-12.0 percent, including butter: -20.7 percent). Consumer had to pay slightly less for  fruit (-1.6 percent) and slightly more for vegetables (+1.5 percent), bread and cereals (+1.3 percent).

The prices of goods as a whole went down slightly (-0.2 percent year-on-year). Among goods, lower prices were recorded especially for telephones (-6.5 percent), consumer electronics (-6.4 percent, including TV sets: -9.9 percent) and information processing equipment (-6.3 percent, including portable computers: -9.5 percent). Consumers had to pay higher prices than a year earlier, for instance coffee, tea and cocoa (+7.6 percent, including unground coffee: +12.8 percent), pharmaceutical products (+4.9 percent) and tobacco products (+3.5 percent).

Prices of service rose above average (+1.4 percent) compared with  November 2013 (+1.4 percent), mainly due to the  increase in net rents (+1.4 percent). Besides, price increases were observed, for example, recreational and sporting services (+4.4 percent) and services of social facilities (+4.1 percent), including hime care for people insured under health insurance scheme: 10.3 percent). The prices of telecommunication services continued to declined (-1.0 percent) while those of holiday packages fell by 1.4 percent.

Compared with October 2014, consumer prices remained unchanged. Prices of food was down (-0.5 percent), mainly due to dairy products and eggs (-2.2 percent) and edible fats and oils (-1.1 percent). Cost of energy also declined by 1.1 percent, mainly due to motor fuel (-2.8 percent, including supergrade petrol: -3.3 percent; Diesel fuel: -1.6 percent) and heating oil (-1.6 percent) in November 2014.

The harmonized index of consumer prices rose by 0.5 percent in November of 2014 over the same month last year. Compared with the previous month, the index remained unchanged. The preliminary results for the HICP were confirmed.

Germany Inflation Confirmed at 0.6% in November


DESTATIS l Rida l rida@tradingeconomics.com
12/11/2014 7:39:55 AM