German Inflation Rate Confirmed At 2% In April


German consumer prices rose 2 percent year-on-year in April of 2017, following a 1.6 percent rise in March and matching a preliminary estimate. While cost of services went up at a faster pace, food inflation slowed.

Year-on-year, cost of goods as a whole rose 2.2 percent, following a 2.5 percent gain in the prior month, as cost of food rose less than in a month earlier while energy inflation was steady.

Energy prices as a whole increased by 5.1 percent in April, the same as in March. Prices went up for heating oil (30.1 percent), followed by motor fuels (10.6 percent) and electricity (1.1 percent). In contrast, cost fell for gas (-3.4  percent).  

Excluding the prices of all types of energy, the inflation rate would have been 1.7 percent in April; excluding the prices of mineral oil products, it would have been 1.4 percent.

Prices of food and non-alcoholic beverages rose 1.7 percent, after a 2.2 percent rise in a month earlier. Prices increased markedly for: edible fats and oils (15.8 percent, including butter: 34.2 percent), fish and fish products (3.8 percent), fruits (2.5 percent), meat and meat products (1.9 percent) and dairy products (5.0 percent). 

Cost of services went up 1.7 percent in March, faster than a 0.7 percent gain in the prior month. Prices rose mainly for: net rents exclusive of heating expenses (1.7 percent); catering services (1.8 percent) and insurance services (2.3 percent). In contrast, cost fell for services of social facilities (−6.6 percent).

On a monthly basis, consumer prices were flat, following a 0.2 percent rise in March. Prices of food declined 0.3 percent as cost fell for: vegetables (-2.6 percent), confectionery (-0.9 percent), fruits (-0.5 percent) and edible fats and oils (-0.3 percent). Meanwhile, the prices of energy were up 0.9 percent as cost rose for: heating oil (+2.9 percent) and motor fuels (+1.9 percent). Also, cost surged for: air passenger transport (+3.7 percent) and  tobacco products (2.1 percent). Consumers paid less, however, for coffee, tea and cocoa (-1.1 percent) and for gardens, plants and flowers (-0.8 percent).

The harmonised index of consumer prices rose 2 percent from the previous year, faster than a 1.5 percent rise in the previous month and in line with estimates. Compared to a month earlier, the index was flat.

Destatis l Rida Husna | rida@tradingeconomics.com
5/12/2017 12:30:05 PM