German September Inflation Rate Confirmed at 1.8%


German consumer prices rose by 1.8 percent year-on-year in September 2017, the same pace as in August and in line with the preliminary estimate. Service price inflation was unchanged from the previous month while cost of energy and food rose at a faster pace.

Year-on-year, cost of services went up 1.6 percent from a year ago, the same as in August. Prices rose mainly for: Net rents exclusive of heating expenses (1.7 percent); maintenance and repair of vehicles (3.5 percent); and catering services (2.5 percent). However, consumers paid less for services of social facilities (-7.3 percent) and for telecommunication services (-0.7 percent).

Prices of goods rose 2.2 percent, faster than a 2.0 percent rise in August, as prices of both energy and food increased more than in a month earlier. Prices also increased for newspapers and periodicals (5.2 percent) and tobacco products (4.3 percent).

Energy prices were up 2.7 percent, following a 2.3 percent rise in a month earlier. Prices increased for: Mineral oil products (6.2 percent), of which heating oil (12.9 percent) and motor fuels (4.5 percent); and electricity (2.0 percent). In contrast, gas prices were down by 2.5 percent. 

Food and non-alcoholic beverages prices rose 3.2 percent, following a 2.8 percent increase in the prior month. Prices went up for: edible fats and oils (34.2 percent), in particular butter (70.4 percent); dairy products (15.0 percent); fish and fish products (3.4 percent); and meat and meat products (2.6 percent). Only the prices of vegetables were down (-4.4 percent).

On a monthly basis, consumer prices increased by 0.1 percent, also in line with the flash estimate and following a 0.1 percent rise in August. Considerable month-on-month price increases were recorded for clothing (6.2 percent) and footwear (4.3 percent), due to the changeover to the autumn/winter collection. Also, energy prices increased by 1.2 percent, especially for mineral oil products (2.7 percent) and food prices increased 0.6 percent. Due to the end of the summer holidays in September, considerable month-on-month price decreases were recorded for package holidays (-11.6 percent) and air tickets (6.5 percent).

The harmonised index of consumer prices rose 1.8 percent from the previous year, the same as in a month earlier and matching the preliminary estimate. Compared to a month earlier, the index rose 0.1 percent.

Destatis l Rida Husna | rida@tradingeconomics.com
10/13/2017 10:38:52 AM