Germany Inflation Rate Confirmed at 1.2% in April


Consumer prices in Germany rose by 1.2 percent in April 2013 compared with April 2012. The inflation rate as measured by the consumer price index thus continued its downward trend (March 2013: +1.4 percent). A lower rate of price increase was last measured in August 2010 (+1.0 percent).

Since the beginning of the year, the price development for mineral oil products has had a downward effect on the overall inflation rate. In April 2013, the relevant prices were down 6.3 percent on April 2012 (of which motor fuels: -6.0 percent; heating oil: -7.4 percent). Not considering the price development for motor fuels and heating oil, the inflation rate in April 2013 was +1.7 percent. Energy prices as a whole rose 0.4 percent from April 2012 to April 2013. 
 
The decrease in health care prices (−3.8 percent) caused by the abolition of the medical consultation charge in January 2013 continued to have a downward effect on the overall inflation rate. The decline in the inflation rate in April 2013, however, was mainly due to the price decrease for package holidays (−3.3 percent on April 2012).
 
Food price increases from April 2012 to April 2013 were noticeable for consumers (+4.1 percent). Prices were up on a year earlier especially for fruit (+7.6 percent) and vegetables (+7.1 percent) as well as meat and meat products (+5.4 percent).  Total goods prices were up 1.5 percent in April 2013 on April 2012. Prices of non-durable and semi-durable consumer goods in April 2013 were 1.8 percent higher each than a year earlier. 
 
Total service prices rose by 0.8 percent in April 2013 compared with April 2012 (including net rents exclusive of heating expenses: +1.3 percent). Marked price increases were recorded, for example, for recreational and sporting services (+3.1 percent) and education (+3.4 percent). In contrast, price decreases were observed for financial services (−8.4 percent) and telecommunications services (−1.6 percent).
 

Destatis | Nuno Fontes | nuno@tradingeconomics.com
5/14/2013 8:54:08 AM