German Inflation Rate Confirmed at 4-Month Low of 1.6%


German consumer prices rose by 1.6 percent year-on-year in October 2017, following a 1.8 percent rise in the prior two months and matching the preliminary estimate. It was the lowest inflation rate since June, as cost rose less than in a month earlier for energy and services.

Year-on-year, cost of services went up 1.2 percent from a year ago, after a 1.6 percent in September. Prices rose mainly for: Net rents exclusive of heating expenses (1.6 percent); maintenance and repair of vehicles (3.3 percent); catering services (2.2 percent) and in-patient health services (3.5 percent). However, consumers paid less for services of social facilities (-7.6 percent); package holidays (-1.0 percent) and for telecommunication services (-0.7 percent).

Prices of goods rose 1.9 percent, slower than a 2.2 percent rise in the preceding month, as prices of both energy and food increased less than in a month earlier. Prices also increased for newspapers and periodicals (5.2 percent); tobacco products (4.6 percent) and pharmaceuticals products (2.6 percent).

Energy prices were up 1.2 percent, following a 2.7 percent rise in a month earlier. Prices increased for: heating oil (3.8 percent); motor fuels (1.2 percent); and electricity (1.9 percent). In contrast, gas prices were down by 1.7 percent. 

Food and non-alcoholic beverages prices rose 3.8 percent, following a 3.2 percent increase in the prior month. Prices went up for: edible fats and oils (27.9 percent), in particular butter (54.0 percent); dairy products (15.2 percent); fish and fish products (3.0 percent); meat and meat products (2.6 percent) and fruits (4.1 percent). Only the prices of confectionery were down (-0.2 percent).

On a monthly basis, consumer prices were flat, following a 0.1 percent gain in September and in line with the flash estimate. Prices fell for: package holidays (-7.1 percent); energy prices (-0.1 percent) and motor fuels (-0.8 percent). On the other hand, prices increased markedly for heating oils (2.2 percent). Also, food prices increased by 0.8 percent, especially for: vegetables (2.9 percent) and fruit (2.4 percent, including apples: 2.3 percent). Prices increased again for edible oils and fats (1.7 percent, including butter: 2.8 percnt) and dairy products (0.9 percent, including sliced cheese:3.6 percent; UHT milk: 1.0% percent). In contrast, prices were slightly down for confectionery (–0.7 percent) and fish and fish products (–0.2 percent).

The harmonised index of consumer prices rose 1.5 percent from the previous year, compared to a 1.8 percent rise in a month earlier and matching the preliminary estimate. Compared to a month earlier, the index fell 0.1 percent.

German Inflation Rate Confirmed at 4-Month Low of 1.6%


Destatis l Rida Husna | rida@tradingeconomics.com
11/14/2017 8:35:08 AM