News

Germany Inflation Rate Confirmed at 1.7%
Consumer prices in Germany increased 1.7 percent year-on-year in March of 2021, in line with preliminary estimates and following a 1.3 percent rise in February. It is the highest inflation rate since February of 2020 as the temporary reduction of the VAT rates ended. Reduced VAT rates came into effect on July 1st 2020 for six months, as part of government measures to support the economy during the pandemic. Higher commodity prices, a CO2 charge introduced at the beginning of the year and a base effect as last year the inflation fell, also contributed to the rise in the CPI. Main increases were seen for energy (4.8 percent), namely heating oil (19.4 percent), motor fuels (12.7 percent), natural gas (2.2 percent), fruit and dairy products (2.5 percent each) and tobacco (4.3 percent). On a monthly basis, consumer prices were up 0.5 percent, also in line with early estimates.
Published on 2021-04-15

Germany Inflation Rate Hits 13-Month High
Germany's consumer price inflation rate is expected to pick up to 1.7 percent year-on-year in March 2021, the highest since February 2020 and in line with market expectations, a preliminary estimate showed. Goods prices should advance at a faster pace (1.9 percent vs 1.0 percent in February), boosted by a jump in energy cost (4.8 percent vs 0.3 percent) and a larger increase in food prices (1.6 percent vs 1.4 percent). In addition, services inflation is likely to accelerate to 1.6 percent from 1.4 percent, adding to signs of a gradual recovery in domestic demand. On a monthly basis, consumer prices are expected to advance 0.5 percent in March, compared with a 0.7 percent climb in February.
Published on 2021-03-30

Germany Inflation Rate Confirmed at Near 1-Year High
Annual inflation rate in Germany accelerated to 1.3% in February of 2021, the highest rate since March 2020 and in line with preliminary estimates. After the temporary VAT cut ended on December 31st 2020, the inflation rate reached its pre-coronavirus crisis level for the second month in a row. Prices of goods were up 1%, namely motor fuels (2.4%); natural gas (2.1%); and heating oil (1.1%). This was due not only to the CO2 charge introduced at the beginning of the year but also the price increase recorded on the crude oil market. Food prices rose by 1.4%, mainly due to confectionery and dairy products (+2.7% each). Marked price rises were also observed for tobacco (+3.9%) while notable decreases were recorded for mobile phones (-9.2%). Cost of services was up 1.4%, with main increases seen at net rents exclusive of heating expenses (1.3%), services of social facilities (+6.5%) and financial services (+6.2%).
Published on 2021-03-12

Germany Inflation Rate Hits 11-Month High
Germany's consumer price inflation rate is expected to pick up to 1.3 percent year-on-year in February 2021, the highest since March 2020 and slightly above market expectations of 1.2 percent, a preliminary estimate showed. Goods prices should advance at a faster pace (1.0 percent vs 0.6 percent in January), boosted by a rebound in energy cost (0.3 percent vs -2.3 percent) and a smaller increase in food prices (1.4 percent vs 2.2 percent). Meanwhile, services inflation is likely to remain steady at 1.4 percent with rent prices rising 1.3 percent, the same as in January. On a monthly basis, consumer prices are expected to climb 0.7 percent in February, compared with a 0.8 percent jump in January.
Published on 2021-03-01

Germany Inflation Rate Confirmed at 7-Month High
Annual inflation rate in Germany was confirmed at 1% in January of 2021, in line with preliminary estimates. It is the first increase in consumer prices in 7 months as higher VAT rates were passed on to the consumers after the temporary reduction in value added tax, which was a measure of the Federal Government's stimulus package, ended on December 31st, 2020. The reduced tax rate only continues to apply to restaurants and catering services. Also, the CO2 charge which was introduced at the beginning of the year also had an impact on the CPI. Food prices jumped 2.2%, namely meat (3.5%), fruit (3.2%) and vegetables (3.1%). Additional upward pressure also came from net rents exclusive of heating expenses (1.3%), prices for services of social facilities (6%) and maintenance and repair of vehicles (3.4%). In contrast, energy prices fell 2.3%, mainly heating oil (-13%) and motor fuels (-2.9%) and rail ticket prices were down 8.1%. Ona monthly basis, consumer prices jumped 0.8%.
Published on 2021-02-10

Germany Consumer Prices Rise for 1st Time in 7 Months
Consumer prices in Germany increased 1 percent year-on-year in January of 2021, the first rise in seven months and above market forecasts of 0.7 percent, preliminary estimates showed. The temporary reduction in the VAT rate aimed to revive the economy during the coronavirus crisis ended on December 31st. Higher CO2 prices and an increase in minimum wages from January also accounted for the CPI rise. On a monthly basis, inflation increased to 0.8 percent from 0.5 percent, above forecasts of 0.4 percent. The harmonized index went up 1.6 percent year-on-year and 1.4 percent month-over-month.
Published on 2021-01-28

German Consumer Prices Drop 0.3% in December
Consumer prices in Germany dropped 0.3 percent from a year earlier in December 2020, the same as in the previous month, which was the largest decline since January 2015. It was the fifth month of deflation in the last 12 months due to the temporary value added tax reduction in the second half of the year. Prices of goods went down 1.8 percent, mainly due to a 6 percent decline in energy cost on the back of lower prices for heating oil and motor fuels. Also, food inflation eased to 0.5 percent in December from 1.4 percent in November. At the same time, services inflation was steady at 1.1 percent, with rent prices increasing again by 1.2 percent. Considering 2020 full year, inflation rate averaged 0.5 percent, the lowest since 2009.
Published on 2021-01-19

German Consumer Prices Fall for 4th Month
Consumer prices in Germany are expected to drop 0.3 percent from a year earlier in December 2020, the same as in the previous month, which was the largest decline since January 2015, a preliminary estimate showed. Goods prices are seen falling 1.8 percent, the same as in November, led by a sharp decline in energy prices (-6.0 percent vs -7.7 percent) and a slowdown in food inflation (0.5 percent vs 1.4 percent). At the same time, services inflation will likely remain flat at 1.1 percent, with rent prices increasing again by 1.3 percent. On a monthly basis, consumer prices are expected to rise 0.5 percent in December, missing forecasts of 0.6 percent.
Published on 2021-01-06

Germany Deflation Deepens in November
Consumer prices in Germany fell 0.3% year-on-year in November of 2020, the most since January of 2015 and in line with preliminary figures. It was the fourth month of deflation so far this year due to the temporary VAT reduction from July 1st 2020 and until the end of the year as part of a stimulus package to help the economy recover from the coronavirus shock. Prices of goods went down 1.8%, mainly due to energy (-7.7%), consumer durables such as telephones (-6.7%) and consumer electronics (-4.5%). Excluding energy products, the inflation rate would have been 0.6%. Upward pressure came from the cost of food (1.4%) namely meat and fruit, and services (1.1%) mainly heating expenses (1.4%). Compared with October, consumer prices went down 0.8%, the biggest fall in a year.
Published on 2020-12-11

German CPI Falls the Most in Almost 6 Years
Consumer prices in Germany are expected to decrease 0.3 percent from a year earlier in November 2020, the largest decline since January 2015 and compared to market expectations of a 0.1 percent fall, a preliminary estimate showed. Prices have been pressured by subdued domestic demand and the government's announcement in July of a temporary VAT rate cut until the end of the year as part of a stimulus package to help Europe's largest economy recover from the coronavirus shock. Goods prices should fall 1.8 percent (vs -1.5 percent in October) led by a decline in energy cost (-7.7 percent vs -6.8 percent). Food inflation is set to remain unchanged at 1.4 percent. At the same time, service inflation is seen picking up slightly to 1.1 percent from 1.0 percent. On a monthly basis, consumer prices are expected to decrease by 0.8 percent in November.
Published on 2020-11-30

German Consumer Prices Fall for 2nd Month
Consumer prices in Germany dropped 0.2 percent from a year earlier in October 2020, the same as in the previous month, which was the largest decline since January 2015. Prices remained under pressure following the government's announcement in July of a temporary VAT rate cut until the end of the year as part of a stimulus package to help Europe's largest economy recover from the coronavirus shock. Goods prices fell 1.5 percent (vs -1.7 percent in September) led by a decline in energy cost (-6.8 percent vs -7.1 percent) while food inflation accelerated (1.4 percent vs 0.6 percent). At the same time, services inflation was steady at 1.0 percent, supported by an increase in net rents exclusive of heating expenses. On a monthly basis, consumer prices edged up 0.1 percent, after a 0.2 percent drop in September.
Published on 2020-11-12

Germany Consumer Prices Drop for 2nd Month
Consumer prices in Germany are expected to decrease 0.2 percent from a year earlier in October 2020, the same as in the previous month and compared to market expectations of a 0.3 percent fall, a preliminary estimate showed. It remained the largest decline since January 2015 pressured by the government's announcement in July of a temporary VAT rate cut until the end of the year as part of a stimulus package to help Europe's largest economy recover from the coronavirus shock. Goods prices should fall 1.5 percent (vs -1.7 percent in September) led by a decline in energy cost (-6.8 percent vs -7.1 percent) while food inflation advanced (1.4 percent vs 0.6 percent). At the same time, service inflation is seen steady at 1.0 percent. On a monthly basis, consumer prices are expected to increase 0.1 percent, after a 0.2 percent drop in September.
Published on 2020-10-29

German Consumer Prices Drop the Most Since 2015
Consumer prices in Germany declined 0.2 percent from a year earlier in September 2020, the largest decrease since January 2015, as prices remained under pressure following the government's announcement in July of a VAT rate cut until the end of the year to help Europe's largest economy recover from the coronavirus shock. Goods prices fell 1.7 percent (vs -1.3 percent in August) led by a decline in energy cost (-7.1 percent vs -6.3 percent) and a slowdown in food inflation (0.6 percent vs 0.7 percent). At the same time, service inflation was steady at 1.0 percent, supported by an increase in net rents exclusive of heating expenses. The harmonised index of consumer prices were down 0.4 percent from a year earlier.
Published on 2020-10-13

German Consumer Prices Fall Most in 5-1/2 Years
Consumer prices in Germany are expected to decrease 0.2 percent from a year earlier in September 2020, the largest decline since January 2015 and compared to market expectations of a 0.1 percent fall, a preliminary estimate showed. Prices have been under pressure following the government's announcement in July of a temporary VAT rate cut until the end of the year as part of a stimulus package to help Europe's largest economy recover from the coronavirus shock. Goods prices should fall 1.7 percent (vs -1.3 percent in August) led by a decline in energy cost (-7.1 percent vs -6.3 percent) and a slowdown in food inflation (0.6 percent vs 0.7 percent). At the same time, service inflation is seen steady at 1.0 percent. On a monthly basis, consumer prices are expected to drop 0.2 percent.
Published on 2020-09-29

German Consumer Prices Unchanged in August
Consumer prices in German were unchanged from a year earlier in August 2020, after a 0.1 percent fall in the previous month and matching preliminary estimates. Services inflation slowed to 1.0 percent from 1.2 percent in July, led by growing rent prices (1.4 percent), while goods prices dropped 1.3 percent (vs -1.4 percent in July) due to a fall in energy prices (-6.3 percent vs -6.7 percent) and a slowdown in food inflation (0.7 percent vs 1.2 percent). The harmonised index of consumer prices edged down 0.1 percent from a year earlier and by 0.2 percent fall from the previous month. The government announced in July a VAT cut until the end of the year as part of a stimulus package to help Europe's largest economy recover from the coronavirus shock.
Published on 2020-09-11

Germany CPI Unchanged in August, Misses Expectations
Germany's consumer prices are expected to remain unchanged year-on-year in August 2020, following a 0.1 percent decline in the previous month and missing market expectations of a 0.1 percent rise, a preliminary estimate showed. The government announced in July a VAT cut until the end of the year as part of a stimulus package to help Europe's largest economy recover from the coronavirus shock. Services inflation should ease to 1.0 percent from 1.2 percent in July, while goods prices are likely to fall 1.3 percent (vs -1.4 percent in July) led by a decrease in energy prices (-6.3 percent vs -6.7 percent) and a slowdown in food inflation (0.7 percent vs 1.2 percent). On a monthly basis, consumer prices are expected to fall 0.1 percent, following a 0.5 percent drop in July.
Published on 2020-08-31

German Consumer Prices Fall 0.1% in July
Consumer prices in German fell 0.1 percent from a year earlier in July 2020, after a 0.9 percent rise in the previous month and matching preliminary estimates. This was the first month of deflation since April 2016, as goods prices dropped (-1.4 percent vs 0.2 percent in June), due to a faster fall in energy prices (-6.7 percent vs -6.2 percent) while food prices rose at a softer pace (1.2 percent vs 4.4 percent). Also, services inflation eased to 1.2 percent from 1.4 percent, led by growing rent prices (1.4 percent). The harmonised index of consumer prices were unchanged from a year earlier and by 0.5 percent fall from the previous month.
Published on 2020-08-13

Germany Slips into Deflation in July
Consumer prices in Germany are seen decreasing 0.1 percent from a year earlier in July 2020, the first month of deflation since April 2016 and compared to market expectations of a 0.2 percent rise. Goods prices should fall 1.4 percent (vs 0.2 percent in June) led by a decline in energy cost (-6.7 percent vs -6.2 percent) and a slowdown in food inflation (1.2 percent vs 4.4 percent). At the same time, services prices are set to increase at a slower pace (1.2 percent vs 1.4 percent). On a monthly basis, consumer prices are expected to drop 0.5 percent, the most since January and compared to forecasts of a 0.2 percent fall.
Published on 2020-07-30

Germany Inflation Rate Confirmed at 0.9% in June
The annual inflation rate in German was confirmed at 0.9 percent in June 2020, up from 0.6 percent in the previous month. Services inflation accelerated to 1.4 percent from 1.3 percent, led by growing rent prices (1.4 percent). Also, goods prices recovered (0.2 percent vs -0.4 percent in May), mainly due to a softer fall in energy prices (-6.2 percent vs -8.5 percent), while food cost rose at a softer pace (4.4 percent vs 4.5 percent). The harmonised index of consumer prices rose by 0.8 percent from a year earlier and by 0.7 percent from the previous month.
Published on 2020-07-14

German June Inflation Beats Expectations
German's consumer price inflation is expected to increase to 0.9 percent year-on-year in June 2020 from 0.6 percent in the previous month, easily beating market expectations of 0.6 percent. Services inflation should pick up to 1.4 percent from 1.3 percent, led by growing rent prices, while goods prices are seen rebounding 0.2 percent after May's 0.4 percent fall. Within goods, energy deflation will probably ease to 6.2 percent from 8.5 percent and food inflation is set to remain virtually unchanged at 4.4 percent, compared to 4.5 percent in May. On a monthly basis, consumer prices rose 0.6 percent in May, also above consensus of a 0.3 percent gain.
Published on 2020-06-29