Germany Inflation Rate Down to 1.4% in March


Consumer prices in Germany rose by 1.4 percent in March 2013 compared with March 2012. The inflation rate as measured by the consumer price index thus continued its downward trend that started at the beginning of the year (February 2013: +1.5 percent; January 2013: +1.7 percent).

The decreasing overall inflation rate in March 2013 was mainly due to falling prices of mineral oil products (−6.5 percent; of which motor fuels: −6.7 percent; heating oil: −6.2 percent). As regards household energy, however, electricity prices in March 2013 rose substantially (+12.4 percent) on March 2012. Not considering the development of energy price, the inflation rate in March 2013 was +1.6 percent. 

Food prices rose markedly by 3.7 percent in March 2013 compared with March 2012. Consumers had to pay more than a year earlier especially for fruit (+9.7 percent) and meat and meat products (+5.7 percent). Price increases were markedly higher than the overall inflation rate also for fish and fish products (+2.9 percent), bread and cereals (+2.6 percent) and confectionery (+2.2 percent). 
 
Total goods prices were up 1.4 percent in March 2013 on March 2012, with price increases being largest for semi-durable consumer goods (+2.1 percent; including clothing: +2.1 percent). Prices of non-durable consumer goods in March 2013 were just 1.6 percent higher than a year earlier, which is due to the moderate energy price development. Prices of durable consumer goods were slightly down again. 
 
Total service prices rose by 1.5 percent in March 2013 compared with March 2012. The main reason was again the development of net rents exclusive of heating expenses (+1.3 percent), on which households spend a good fifth of their total budget. In contrast, price decreases were recorded especially for out-patient health services (−12.3 percent) as a consequence of the abolished medical consultation charge (January 2013).
 
A lower rate of price increase was last measured in December 2010 (+1.3 percent). Compared with February 2013, the consumer price index rose by 0.5 percent in March 2013. The Federal Statistical Office thus confirms its provisional result of 2 April 2013.
 

Destatis | Nuno Fontes | nuno@tradingeconomics.com
4/11/2013 8:55:12 AM