German January Inflation Rate Confirmed at 1.6%


The German consumer price inflation was confirmed at a three-month low of 1.6 percent year-on-year in January 2018, compared with 1.7 percent in the previous month.

Year-on-year, prices of goods rose by 1.5 percent, compared with 1.8 percent in the preceding month, as energy prices went up at a softer pace while food inflation was steady. Prices also increased for newspapers and periodicals (5.1 percent) and tobacco products (4.5 percent), while cost fell for information processing equipment (-2 percent), consumer electronics (-1.4 percent) and clothing (-0.9 percent). 

Energy prices were up 0.9 percent in January, after a 1.3 percent rise a month earlier. Prices increased mainly for heating oil (5.5 percent), electricity (1.6 percent) and charges for central and district heating (1.5 percent). In contrast, consumers paid less for gas (-1.3 percent) and motor fuels (-0.5 percent).

Food inflation was unchanged at 2.9 percent. Price increases were observed for edible fats and oils (15.2 percent), dairy products (10.3 percent) and fruit (8.3 percent). On the other hand, vegetable prices were markedly down (-5.7 percent).

Services inflation was flat at 1.6 percent, with prices rising for: net rents exclusive of heating expenses (1.7 percent); maintenance and repair of vehicles (4.0 percent); in-patient health services (2.5 percent); and catering services (2.1 percent). Meantime, consumers paid less for  telecommunication services (-0.8 percent).

On a monthly basis, the consumer price index declined by 0.7 percent, after a 0.6 percent gain in December. Prices declined for: package holidays (-22.2 percent); air tickets (-5.0 percent); clothing (-7.3 percent) and footwear (-3.3 percent). By contrast, cost rose for energy (0.4 percent) and food (0.8 percent).

The harmonised index of consumer prices rose by 1.4 percent from the previous year, but declined by 1 percent month-over-month.

German January Inflation Rate Confirmed at 1.6%


Destatis l Rida Husna | rida@tradingeconomics.com
2/14/2018 1:10:39 PM