German August Inflation Rate Confirmed at 2%



Germany’s annual inflation rate was confirmed at 2 percent in August 2018, unchanged from the previous month. Prices of services and food rose at a softer pace while energy inflation went up further.

Prices of goods rose by 2.7 percent in August, compared with a 2.4 percent rise in the previous month, as energy prices rose further while food inflation slowed slightly. Prices also increased for beers (5.1 percent), newspapers and periodicals (4.5 percent), and tobacco products (3.2 percent). However, prices were down for consumer electronics (-4.8 percent).
Cost of food and non-alcoholic beverages went up 2.4 percent, following a 2.5 percent increase in July. Price increases were observed for edible fats and oils (3 percent), fruit (4.7 percent); dairy products and eggs (4 percent), and vegetables (3.5 percent).
Energy prices went up 6.9 percent, after a 6.6 percent rise in a month earlier. Prices increased mainly for: heating oil (29.7 percent); motor fuels (12.4 percent); electricity (1.0 percent); and charges for central and district heating (2 percent). In contrast, gas prices dropped 1.5 percent.
Services inflation slowed to 1.4 percent from 1.6 percent in July. Upward pressure came from: package holidays (1.9 percent); net rents exclusive of heating expenses (1.6 percent); recreational and sporting services (2.9 percent); and maintenance and repair of vehicles (2.8 percent). Meantime, consumers paid less for pre-primary and primary education services (-13 percent); and air tickets (-6.2 percent).
On a monthly basis, the consumer price index increased by 0.1 percent in August, after a 0.3 percent rise in a month earlier and in line with earlier estimates. Prices of energy rose by 0.7 percent, especially due to heating oil (2.8 percent) and motor fuels (1.2 percent). More substantial price increases were observed for clothing (3.9 percent), especially because the autumn/winter collection has started to arrive. Meantime, price decreases were recorded for pre-primary and primary education services (-18.2 percent) and package holidays (-3.5 percent). Also, prices of food fell 0.3 percent, especially for vegetables (-1.9 percent) and edible fats and oils (-1.3 percent).

The harmonised index of consumer prices rose 1.9 percent from the previous year, and was unchanged month-on-month.


German August Inflation Rate Confirmed at 2%


Destatis l Rida | rida@tradingeconomics.com
9/13/2018 9:25:11 AM