Germany October Inflation Rate Confirmed at 10-Year High


Germany's annual inflation rate increased to 2.5 percent in October 2018 from 2.3 percent in the previous month and in line with the preliminary estimates. It was the highest inflation rate since September 2008, as prices of services and energy rose at a faster pace.

Services inflation rose 1.8 percent in October from 1.5 percent in the prior month, with cost of net rents exclusive of heating expenses advancing by 1.6 percent, compared with 1.5 percent in September. Upward pressure came from: package holidays (7.1 percent); maintenance and repair of vehicles (2.8 percent), and recreation and sporting services (3.2 percent). Meantime, consumers paid less for pre-primary and primary education services (-11.9 percent); air tickets (-2.3 percent), and telecommunication services (-0.7 percent).

Also, energy prices advanced 8.9 percent, after a 7.7 percent rise in a month earlier. Prices increased mainly for: heating oil (39.9 percent); motor fuels (14.8 percent); electricity (1.0 percent); and charges for central and district heating (2.9 percent). In contrast, gas prices dropped 1.4 percent.

Prices of goods went up by 3.2 percent in October, following a 3.1 percent gain in September, boosted by prices of both energy (8.9 percent vs 7.7 percent) and food (1.9 percent vs 2.8 percent).

Cost of food and non-alcoholic beverages increased 1.9 percent, following a 2.8 percent increase in September. Price increases were observed for fish and fish products (2.7 percent); dairy products and eggs (3.1 percent), and vegetables (9.3 percent).

On a monthly basis, the consumer price index increased by 0.2 percent in October, after a 0.4 percent rise in a month earlier and matching earlier estimates. Prices of energy rose by 1.0 percent, especially due to mineral oil products (1.8 percent), of which heating oil (5.4 percent), and motor fuels (0.7 percent). More substantial price increases were observed for clothing (1.2 percent). Also, prices of food declined slightly 0.2 percent, especially for fruit (-2.6 percent). Meantime, price decreases were recorded for package holidays (-3.6 percent). 

The harmonised index of consumer prices rose 2.4 percent from the previous year, and by 0.1 percent month-over-month.

Germany October Inflation Rate Confirmed at 10-Year High


Federal Statistical Office | Chusnul Ch Manan l chusnul@tradingeconomics.com
11/13/2018 8:20:44 AM