German Inflation Rate Confirmed at 1.4% in December


In December of 2013, German annual inflation rate was 1.4 percent, unchanged from the preliminary estimate and higher than in the previous two months. Compared with the previous month, consumer prices were also confirmed at 0.4 percent.

Prices of food and non-alcoholic beverages rose above average again (+3.2 percent) from the same month a year earlier (including food: +3.8 percent). Prices were considerably up for edible fats and oils (+11.2 percent; including butter: +22.0 percent) and for dairy products and eggs (+9.1 percent; including curd: +17.7 percent; UHT milk: +14.0 percent; eggs: +7.2 percent). Consumers had to pay markedly more than a year earlier also for vegetables (+5.0 percent) and fruit (+4.2 percent). Prices were down on the same month of the previous year especially for coffee, tea and cocoa (–4.8 percent; including unground coffee: –7.2 percent). 

For energy products, a slight upward price trend on December 2012 emerged towards the end of the year. The price of energy as a whole rose by 1.1 percent compared with December 2012. However, different price developments were observed for the individual energy products (for example, electricity: +11.3 percent; but heating oil: –5.5 percent; motor fuels: –2.7 percent). Energy prices as a whole thus had only a small effect on the inflation rate in December 2013. Not considering the development of energy prices, the rate of price increase in December 2013 (+1.5 percent) was just slightly higher than the overall inflation rate. 

Noticeable year-on-year developments in December 2013 were those for games of chance (+21.3 percent) and out-patient health services (–12.3 percent). In addition, there were marked price rises on December 2012, among other things, for newspapers and periodicals (+4.7 percent), tobacco products (+4.5 percent) and hairdresser services (+4.2 percent). Prices in December 2013 decreased from December 2012, for example, for consumer electronics (–5.1 percent) and information processing equipment (–7.9 percent).

The harmonized inflation for December was confirmed at +0.5 percent month-on-month and +1.2 percent year-on-year.

German Inflation Rate Confirmed at 1.4% in December


DESTATIS | Joana Taborda | joana.taborda@tradingeconomics.com
1/16/2014 8:56:39 AM