Germany Inflation Rate Confirmed at 6-Month High


Consumer prices in Germany rose 0.4 percent year-on-year in November of 2015, up from a 0.3 percent increase in the preceding month and matching preliminary estimates. It is the highest rate since May, as cost of food increased at a faster pace while prices of energy dropped less than a month earlier. 

Year-on-year, energy cost (total) decreased by 7.5 percent, following a 8.6 percent drop in October. Prices were down the most for: heating oil (-23.0 percent) and motor fuels (-9.9 percent). Prices of all other energy also declined, including charges for central and district heating (-8.7 percent), gas (-1.7 percent) and electricity (-1.2 percent).

Cost of food and non-alcoholic beverages increased by 1.8 percent, after registering a 1.3 percent rise in the previous month. Prices rose markedly for fruit (+12.1 percent, including citrus fruits: +17.4 percent; apples: +12.3 percent) and vegetables (+9.4 percent, including potatoes: +27.1 percent), fish and fish products (+2.7 percent) and confectionery (+2.7 percent). In contrast, prices were considerably down for dairy products (-4.0 percent).

Cost of goods as a whole fell by 0.6 percent, following a 0.8 percent drop in October. Cost of services rose 1.2 percent in November, the same pace as in a month earlier. Among goods, lower prices were recorded for consumer electronics (-2.0 percent) and telephones (-2.4 percent). Consumers had to pay more for newspapers and periodicals (+6.2 percent),  and information processing equipment (+6.3 percent). Among services, higher cost were seen for net rents exclusive of heating expenses (+1.1 percent), hairdresser services and other services for personal care (+3.5 percent), catering services in restaurants, cafes and the like (+2.8 percent) and maintenance and repair of vehicle (+2.8 percent). In contrast, cost of services declined for package holidays (-1.0 percent) and telecommunication services (-1.5 percent).

On monthly basis, consumer prices rose 0.1 percent in November, after remaining unchanged in October., as prices of energy (total) and food increased. In energy. sector, prices increases were seen for motor fuels (+0.7 percent)) and heating oils (+0.3 percent, especially the charges for central and district heating: -0.8 percent). In food category, prices increased for fruits (+1.6 percent).

The harmonized index of consumer prices (HICP) increased by 0.3 percent year-on-year in November, following a 0.2 percent rise in October. On month-on-month basis, the index rose 0.1 percent, after remaining unchanged in a month earlier.


Germany Inflation Rate Confirmed at 6-Month High


Destatis l Rida Husna | rida@tradingeconomics.com
12/11/2015 8:45:42 AM