German Inflation Rate Confirmed at 1.6% in March


German consumer price inflation rose to 1.6 percent year-on-year in March 2018 from a 15-month low of 1.4 percent in the previous month and matching the preliminary estimate. Cost increased at a faster pace for services, energy and food.

In March, prices of goods rose by 1.4 percent year-on-year, compared to 1 percent in the preceding month, as prices went up more than in a month earlier for energy and food. Prices also increased for newspapers and periodicals (4.8 percent) and tobacco products (4.5 percent) and beer (3.5 percent). Meantime, cost fell for consumer electronics (-3.9 percent) and information processing equipment (-3.5 percent).

Energy prices were up 0.5 percent, after a 0.1 percent rise in a month earlier. Prices increased mainly for: heating oil (5.4 percent); electricity (1.5 percent) and charges for central and district heating (0.8 percent). In contrast, consumers paid less for: solid fuels (-1.6 percent); gas (-1.4 percent) and  motor fuels (-0.7 percent).

Cost of food rose by 2.8 percent (from 1.1 percent in February). Price increases were observed for: edible fats and oils (14.9 percent); dairy products (10.4 percent and fruit (7.4 percent). On the other hand, vegetable prices fell by 6.6 percent.

Cost of services rose 1.8 percent (from 1.6 percent in a month earlier), with prices rising for: net rents exclusive of heating expenses (1.6 percent); maintenance and repair of vehicles (3.2 percent); package holidays (3.2 percent) and catering services (2.2 percent). Meantime, consumers paid less for  telecommunication services (-0.7 percent).

On a monthly basis, the consumer price index went up by 0.4 percent, following a 0.5 percent gain in February. Prices advanced for: clothing (5.8 percent) and footwear (4.4 percent); package holidays (2 percent) and air tickets (1.5 percent). Also, prices increased for food (0.2 percent), especially for edible fats and oils (4.9 percent, including butter: 8.1 percent), fish and fish products (1.1 percent), while prices of vegetables went down slightly (–0.5 percent, including tomatoes: –1.6 percent; butterhead lettuce or iceberg salad: –0.8 percent). On the other hand, cost of energy fell by 0.6 percent, particularly for motor fuel prices (–2.1 percent, including supergrade petrol: –2.4 percent, diesel fuel: –1.3 percent).

The harmonised index of consumer prices rose by 1.5 percent from the previous year and by 0.4 percent month-over-month.

German Inflation Rate Confirmed at 1.6% in March


Destatis l Rida Husna | rida@tradingeconomics.com
4/13/2018 6:55:31 AM