German Inflation Rate Confirmed at 0.8% in November


Consumer prices in Germany rose 0.8 percent year-on-year in November of 2016, the same as in October and matching preliminary estimates. Inflation rate remained at its highest level since October 2014, as prices of food rose at a faster pace and cost of services went up less than in a month earlier while cost of transport declined further.

Year-on-year, energy cost (total) decreased by 2.7 percent, following a 1.4 percent drop in October. Prices were down for: central and distric heating: -6.9 percent, heating oil (-6.7 percent), gas: -4.1  percent and motor fuels: -2.2 percent. 

Cost of food and non-alcoholic beverages went up 1.2 percent, after gaining 0.3 percent in the previous month. Prices increased for edible fats and oils (+13.3 percent, including butter: +26.0 percent, and margarine: +2.3 percent, confectionery: +1.4  percent, including chocolate slabs: +6.0 percent), dairy products (+1.5 percent, including hard cheese: +3.1 percent and eggs: +9.0 percent) and fish and fish products (+2.8 percent). In contrast, price fell for vegetables (-0.4 percent).

Cost of goods as a whole rose 0.5 percent, following a 0.4 percent rise in the preceding month. Cost of services rose 1.1 percent in  November, following a 1.3 percent gain in the previous month. Among goods, higher prices were recorded for food (+1.2 percent), motor vehicles (+1.7 percent), tobacco products (+3.0 percent) and newspapers and periodicals (+3.9 percent). In contrast, cost declined for consumer electronic (-4.4 percent). Among services, cost went up for: net rents exclusive of heating expenses (+1.4 percent), catering services in restaurants, cafes and the like (+1.9 percent), insurances (+2.7 percent) and social facilities (+4.1 percent). In contrast, cost dropped for package holidays (-4.1 percent) and telecommunication services (-1.3 percent).

On a monthly basis, consumer prices went up 0.1 percent, after gaining 0.2 percent in the prior month and in line with consensus. 

The harmonized index of consumer prices (HICP) rose 0.7 percent from a year earlier, the same pace as in October. On a month-on-month basis, the index remained unchanged, following a 0.2 percent rise in the preceding month and in line with market expectations.

German Inflation Rate Confirmed at 0.8% in November


Destatis l Rida Husna | rida@tradingeconomics.com
12/13/2016 8:01:27 AM