German July Inflation Rate Confirmed at 3-Month High


German consumer prices increased 1.7 percent year-on-year in June of 2017, matching the preliminary estimate and following a 1.6 percent gain in the previous month. It was the highest inflation rate since April, mainly due to a rise in energy prices.

Year-on-year, prices of goods rose 1.7 percent, faster than a 1.5 percent rise in June, as cost of energy went up significantly while food inflation was steady. Prices also rose for newspapers and periodicals, tobacco products and pharmaceutical products.

Energy prices were up 0.9 percent from a year earlier, after showing no growth in June. Prices increased for: Mineral oil products (2 percent), of which heating oil (5.4 percent) and motor fuels (1.3 percent); and electricity (1.9 percent). In contrast, gas prices were down by 3.2 percent. 

Food and non-alcoholic beverages was 2.6 percent, unchanged from the prior's month figure. Prices increased for: Edible fats and oils (29.2 percent), especially butter (64 percent); fish and fish products (3.2 percent); and meat and meat products (2.4 percent).

Cost of services went up 1.7 percent in July, the same pace as in June. Prices rose mainly for: net rents exclusive of heating expenses (1.8 percent); package holidays (4.3 percent); maintenance and repair of vehicles (3.2 percent) and catering services (2.0 percent). In contrast, cost of services of social facilities fell (−7.2 percent).

On a monthly basis, consumer prices increased by 0.4 percent, also in line with the flash estimate and following a 0.2 percent rise in June. Prices were up especially for package holidays (14.7 percent), of which international holidays (15.4 percent), domestic holidays (5.7 percent); and air tickets (7.4 percent). Cost of food also increased by 0.3 percent.

The harmonised index of consumer prices rose 1.5 percent from the previous year, the same as in a month earlier and matching a preliminary estimate. Compared to a month earlier, the index rose 0.4 percent.


Destatis l Rida Husna | rida@tradingeconomics.com
8/11/2017 11:21:44 AM