Germany Inflation Rate Confirmed at 1.3% in April


Consumer prices in Germany rose by an annual 1.3 percent in April of 2014, up from 1 percent recorded in the previous month and matching the preliminary estimate. This was the first slight increase in the inflation rate observed this year, mainly due to a 10.4 percent increase in package holiday prices.

Energy prices were down 1.3 percent. Above all, prices continued to be down for mineral oil products (-3.5 percent; including heating oil: -3.7 percent; motor fuels: -3.4 percent). Electricity prices increased 1.8 percent. 

Food prices were up 1.8 percent, down from 2.2 percent in March; cost of beer rose 3.8 percent, tobacco products 4.5 percent and newspapers and periodicals 4.7 percent. Prices declined for coffee, tea and cocoa (-4.3 percent), information processing equipment (-5.4 percent), consumer electronics (-5.9 percent) and telephones (-9.9 percent).

Service prices saw an above-average rise of 2.3 percent compared with a year earlier. Marked price increases were recorded not only for package holidays but also for games of chance (21.1 percent). In addition, prices went up for hairdresser services (4.1 percent), services of social facilities (3.1 percent), recreational and sporting services (+2.8 percent) and for net rents exclusive of heating expenses (1.5 percent). 

On a monthly basis, the consumer price index fell by 0.2 percent in April. Prices of food and non-alcoholic beverages declined by 0.4 percent. Even more significant price decreases were observed for vegetables (−2.3 percent). Consumers also had to pay less for coffee (−2.6 percent). Energy prices rose by 0.7 percent, especially the prices for motor fuel (1.6 percent) and heating oil (0.8 percent) went up.

Germany Inflation Rate Confirmed at 1.3% in April


DESTATIS | Joana Taborda | joana.taborda@tradingeconomics.com
5/14/2014 10:00:25 AM