German CPI Confirmed at 0.1% in May


Consumer prices in Germany rose 0.1 percent year-on-year in May of 2016, following a 0.1 percent drop in April and matching preliminary estimates. While cost of energy fell at a slower pace, cost of services rose further and prices of food remained unchanged.

Year-on-year, energy cost (total) decreased by 7.9 percent, following a 8.5 percent drop in April. Prices were down the most for: heating oil (-25.0 percent), motor fuels (-12.0 percent). Charges also fell for central and district heating (-9.2 percent) and gas (-2.6 percent). In contrast, cost of electricity rose 0.9 percent. 

Cost of food and non-alcoholic beverages were flat, after registering a 0.5 percent rise in the previous month. Prices rose for fruit (+1.8 percent), vegetables (+2.8 percent) fish and fish products (+3.3 percent). In contrast, prices were down for edible oils and fats (-5.9 percent,  including butter: –15.2 percent) and dairy products (-6.2 percent, including curd: -13.1 percent,  UHT milk: –9.4 percent). 

Cost of goods as a whole fell by 0.9 percent, following a 1.0 percent drop in the preceding month. Cost of services rose 1.2 percent in May from 0.8 percent in a month earlier. Among goods, lower prices were recorded for coffee, tea  and cocoa (-4.2 percent, including unground coffee: -6.7 percent). In contrast, prices rose for pharmaceuticals products (+2.8 percent), newspapers and periodicals (+4.2 percent) and tobacco products (+5.0 percent). Among services, higher cost were seen for net rents exclusive of heating expenses (+1.1 percent), recreational and sporting services (+3.1 percent), insurance services (+2.4 percent) and maintenance and repair of vehicles (+2.3 percent). In contrast, prices were down for package holidays (-1.2 percent) and telecommunication services (-1.6 percent).

On a monthly basis, consumer prices rose 0.3 percent, following a 0.4 percent drop in April and in line with expectations. The increase was mainly due to energy prices (+1.6 percent). Compared with a month earlier, prices were markedly up both for heating oil (+9.0 percent) and motor fuels (+3.3 percent, including supergrade petrol: +2.8 percent, diesel fuel: +5.1 percent). Prices were also up for gardens, plants and flowers (+2.2 percent, including cut flowers: +5.0 percent; fruit trees, flower bulbs and the like: +1.5 percent). Cost also rose for services (+0.6 percent). In contrast, prices of food fell 0.5 percent with price decreases  were recorded here especially for edible fats and oils (−1.0 percent, including butter: −3.1 percent) and dairy products (−3.9 percent, including UHT milk: −10.2 percent; fresh milk: −9.2 percent). A Slight price decreases were also observed for clothing (−1.3 percent) and footwear (−0.3 percent).

The harmonized index of consumer prices (HICP) remained unchanged from a year earlier, compared to a 0.3 percent drop in March. On a month-on-month basis, the index rose 0.4 percent after declining 0.8 percent in the preceding month.

German CPI Confirmed at 0.1% in May


Destatis l Rida Husna | rida@tradingeconomics.com
6/10/2016 7:43:49 AM