German Inflation Continues to Rise in April


Consumer prices in Germany rose by 0.5 percent in April 2015 compared with the same month in 2014 as an increase in cost of food and services offset a decline in energy prices.

The price development of mineral oil products (–11.1%, of which heating oil: –20.1%; motor fuels: –8.1%) had a downward effect on overall inflation in April 2015, as had been the case in the previous months. The prices of other energy products, too, were down on a year earlier (for example, charges for central and district heating: –3.9%; electricity: –0.7%). Only the prices of solid fuels were higher than in April 2014 (+2.9%). The prices of energy (total) were down 5.9% on a year earlier. Excluding energy prices, the inflation rate in April 2015 would have been +1.2%.

Food prices rose 1.1% in April 2015 compared with April 2014. Prices increased markedly for vegetables (total) (+6.1%, including cucumbers: +55.3%; butterhead lettuce or iceberg salad: +35.0%; but potatoes: –17.8%) and confectionery (+4.1%, including chocolate slabs: +15.9%). Prices were up on April 2014 also for bread and cereals and for fish and fish products (+1.8% each). Price decreases were recorded especially for dairy products (–2.9%, including fresh milk: –9.6%; cream: –5.1%).

Prices of goods (total), which include energy and food, were down 0.6% in April 2015 on April 2014. Compared with the previous months, the decrease in prices of goods continued to slow down. In addition, some goods were notably more expensive for consumers, for instance, coffee, tea and cocoa (+12.8%, including coffee: +21.0%), newspapers and periodicals (+6.2%) and tobacco products (+3.4%).

Compared with the overall inflation rate, the prices of services (total) rose above average (+1.2%) on April 2014. Among services, net rents exclusive of heating expenses were up 1.3% on a year earlier. Marked price rises were recorded, for example, for road passenger transport (of which taxi ride: +11.9%), hairdresser services and other services for personal care (+3.6%), services of social facilities (+3.5%) and catering services in restaurants, cafes and the like (+3.0%). Prices of package holidays (–2.2%) and telecommunication services (–1.2%) were down on a year earlier.

Compared with March 2015, consumer prices remained unchanged in April 2015. The price increases for goods (+0.4%) were offset by the price decreases for services (–0.4%).

What should be mentioned is the 0.5% price increases for energy (total) in April 2015 on March 2015. Examining this in detail shows that motor fuel prices were up (+2.3%, including supergrade petrol: +2.9%; Diesel fuels: +0.3%), while household energy prices were down (–0.3%, including heating oil: –0.5%).

German Inflation Continues to Rise in April


Destatis | anna@tradingeconomics.com
5/13/2015 8:03:25 AM