Germany Inflation Confirmed at 2.3% in November


Germany's annual inflation rate slowed to 2.3 percent in October 2018 from a ten year high of 2.5 percent in the previous month and in line with the preliminary estimates. Services and food inflation eased while energy inflation pick up.

Services inflation slowed to 1.5 percent in November from 1.8 percent in the prior month, with cost of rents advancing by 1.5 percent, compared with 1.6 percent in October. Also, goods inflation was unchanged at 3.2 percent in November, as a slowdown in food prices (1.4 percent vs 1.9 percent) was offset by a pick up in energy inflation (9.3 percent vs 8.9 percent).
 
Upward pressure came from: maintenance and repair of vehicles (2.5 percent), and catering services in restaurants, cafes and the like (2.1 percent). Meantime, consumers paid less for pre-primary and primary education services (-11.9 percent); and telecommunication services (-0.7 percent).
 
Prices of goods went up by 3.2 percent in November, the same pace as in October, boosted by prices of both energy (9.3 percent vs 8.9 percent) and food (1.4 percent vs 1.9 percent).

Cost of food increased 1.4 percent, following a 1.9 percent increase in October. Price increases were observed for fish and fish products (2.5 percent); dairy products and eggs (0.5 percent), bread and cereal (1.9 percent), and vegetables (9.8 percent). Meanwhile, fruit prices fell by 4.2 percent.
 
On the other hand, energy prices advanced 9.3 percent, after a 8.9 percent rise in a month earlier. Prices increased mainly for: heating oil (40.7 percent); motor fuels (15 percent); electricity (1.0 percent); and charges for central and district heating (3.7 percent). By contrast, gas prices dropped 1.4 percent.
 
On a monthly basis, the consumer price index increased by 0.1 percent in November, after a 0.2 percent rise in a month earlier and matching preliminary estimates. Prices of energy rose by 1.8 percent, especially due to mineral oil products (3.7 percent), of which heating oil (5.9 percent), and motor fuels (2.8 percent). Meantime, food prices edged down by 0.2 percent, mainly due to fruit (-2.1 percent).
Also, price decreases were recorded for package accommodation services (-1 percent), footwear (-0.5 percent), and clothing (-0.4 percent). 

The harmonised index of consumer prices went up by 2.2 percent from the previous year; and by 0.1 percent month-over-month.
 
 
 
 
 
 

Germany Inflation Confirmed at 2.3% in November


Federal Statistical Office l Chusnul Ch Manan | chusnul@tradingeconomics.com
12/13/2018 9:45:32 AM