Germany Inflation Rate Confirmed at Near 7-Year High


Germany's annual inflation rate increased to 2.3 percent in September 2018 from 2 percent in the previous month and in line with the preliminary estimate. It was the highest inflation rate since November 2011, as prices of services, energy and food increased at a faster pace.

Services inflation rose 1.5 percent in September from 1.4 percent in the prior month, with cost of net rents exclusive of heating expenses advancing by 1.5 percent, compared with 1.6 percent in August. Upward pressure came from: package holidays (3.1 percent); and maintenance and repair of vehicles (2.7 percent). Meantime, consumers paid less for pre-primary and primary education services (-11.4 percent); air tickets (-3.9 percent), and telecommunication services (-0.7 percent).

Also, prices of goods went up by 3.1 percent in September, following a 2.7 percent gain in August, boosted by prices of both energy (7.7 percent vs 6.9 percent) and food (2.8 percent vs 2.5 percent).

Cost of food and non-alcoholic beverages went up 2.8 percent, following a 2.4 percent increase in August. Price increases were observed for fruit (2.7 percent); dairy products and eggs (3.5 percent), and vegetables (12.3 percent).

Energy prices went up 7.7 percent, after a 6.9 percent rise in a month earlier. Prices increased mainly for: heating oil (35.6 percent); motor fuels (13.0 percent); electricity (0.9 percent); and charges for central and district heating (2.4 percent). In contrast, gas prices dropped 1.5 percent.

On a monthly basis, the consumer price index increased by 0.4 percent in September, after a 0.1 percent rise in a month earlier and matching earlier estimates. Prices of energy rose by 2.0 percent, especially due to mineral oil products (4.3 percent), of which heating oil (9.7 percent), and motor fuels (2.6 percent). More substantial price increases were observed for clothing (8.1 percent), especially because the autumn/winter collection has started to arrive. Also, prices of food rose 0.9 percent, especially for vegetables (7.8 percent). Meantime, price decreases were recorded for package holidays (-19.5 percent), and air ticket (-4.2 percent).

The harmonised index of consumer prices rose 2.2 percent from the previous year, and by 0.4 percent month-over-month.

Germany Inflation Rate Confirmed at Near 7-Year High


Federal Statistical Office l Chusnul Ch Manan | chusnul@tradingeconomics.com
10/12/2018 8:45:14 AM