Germany Inflation Rate Down to 1.5 Percent in February


Consumer prices in Germany rose by 1.5 percent in February 2013 compared with February 2012. A lower inflation rate, as measured by the consumer price index, was last determined in December 2010 (+1.3 percent). In January 2013, the inflation rate amounted to +1.7 percent.

The inflation rate in February 2013 compared with February 2012 was characterised by above-average rises of energy and food prices. Energy prices were up 3.6 percent on February 2012 (of which household energy: +5.4 percent; motor fuels: +0.4 percent), which was a slightly higher rate than for food prices (+3.1 percent). Not considering the price development for these two product groups, the inflation rate in February 2013 would have been +1.1 percent.

As regards household energy in February 2013, especially electricity prices were considerably higher than a year earlier (+12.4 percent). A major reason is the increase in the surcharge according to the Renewable Energies Act at the beginning of 2013. As regards food, consumers had to pay considerably more in February 2013 than a year earlier for fruit (+7.2 percent) and meat and meat products (+5.4 percent). Prices were markedly up also for bread and cereals (+2.7 percent), fish and fish products (+2.6 percent) and confectionery (+2.3 percent).
 
Total service prices rose by 1.1 percent in February 2013 compared with February 2012. For instance, there were price increases with regard to package holidays (+5.4 percent), transport services (+3.1 percent), insurance services (+1.6 percent) and net rents exclusive of heating expenses (+1.2 percent). In contrast, price decreases were recorded for health care (−3.6 percent, including medical services: −19.2 percent; dental services: −4.7 percent) as a consequence of the abolished medical consultation charge.

Destatis | Nuno Fontes | nuno@tradingeconomics.com
3/12/2013 8:57:06 AM