Germany Inflation Confirmed at 0.8% in September


German annual inflation rate was recorded at 0.8 percent in September of 2014, unchanged from the previous month and matching the preliminary estimate. It is the lowest figure since February of 2010 mainly due to decreasing energy prices.

Year-on-year, energy prices fell 2.2 percent. Prices were down in particular for mineral oil products (–5.1 percent, of which heating oil: –7.9 percent; motor fuels: –4.1 percent). Prices of solid fuels (–2.0 percent) and charges for central and district heating (–1.4 percent) were lower than a year earlier. Electricity prices, however, went up 1.8 percent.

Food prices increased 0.9 percent from September of 2013. Prices were markedly higher than a year earlier  for dairy products (+8.3 percent, including sliced cheese (+14.1 percent); cued cheese (+13.9 percent) and cream (+7.4 percent). Higher prices were also recorded for confectionery (+1.7 percent) and fish and fish products (+1.3 percent). Price decreases were observed for edible fats and oils (-7.3 percent, including butter -13.6 percent). Consumers paid less also for vegetables (-1.5 percent) and  fruits (–1.9 percent).

The prices of services rose above average (+1.5 percent) compared with September 2013, mainly due to the increase in net rents exclusive of heating expenses (+1.4 percent), on which households spend roughly a fifth of their consumption expenditure. Besides, price increases were observed, for example, for recreational and sporting services (+3.0 percent), hairdresser services and other services for personal care (+3.2 percent), and services of social facilities (+3.9 percent, including home care services: +8.7 percent). The prices of telecommunications services, however, declined again (−1.2 percent).

Compared with August 2014, consumer prices remained unchanged in September 2014. In a month-on-month comparison, the prices of clothing and footwear were up (+5.3 percent, including clothing: +5.8 percent), mainly due to the changeover to the autumn/winter collection. However, the prices of air tickets (-5.1 percent) and package holidays (-10.5 percent) decreased after the end of the summer holiday season.

The harmonized index of consumer prices (HICP) rose by 0.8 percent in September of 2014 over the same month last year. Compared with the previous month, the index remained unchanged in September 2014. The HICP estimates were thus confirmed.

Germany Inflation Confirmed at 0.8% in September


DESTATIS l Rida l rida@tradingeconomics.com
10/15/2014 9:26:24 AM