Wednesday May 16 2018
Germany April Inflation Rate Confirmed at 1.6%
Federal Statistical Office | Chusnul Ch Manan | chusnul@tradingeconomics.com

German consumer price inflation rate stood at 1.6 percent year-on-year in April 2018, unrevised from the preliminary estimate and unchanged from the March's figure. Prices of food and energy rose at a faster pace, while services inflation slowed.

Prices of goods rose 1.6 percent year-on-year in April, compared to 1.4 percent in the preceding month, as food and energy inflation rates picked up. Prices also increased for newspapers and periodicals (4.8 percent), beer (4.7 percent) and tobacco products (4.4 percent). Meantime, cost fell for consumer electronics (-3.8 percent) and information processing equipment (-3.0 percent).
 
Energy prices were up 1.3 percent, after a 0.5 percent rise in a month earlier. Prices increased mainly for: heating oil (8.0 percent); electricity (1.6 percent); motor fuels (0.6 percent); and charges for central and district heating (0.6 percent). In contrast, consumers paid less for both solid fuels (-1.9 percent) and gas (-1.3 percent).
 
Cost of food rose 3.4 percent in April, faster than a 2.9 percent increase in March. Price increases were observed for: edible fats and oils (15.4 percent), of which butter (30.2 percent); dairy products and eggs (8.9 percent); fruit (8.6 percent); fish and fish products (2.5 percent); and for meat and meat products (2.4 percent). On the other hand, vegetable prices fell 4.5 percent.
 
Services inflation softened to 1.5 percent in April from 1.8 percent in a month earlier, with prices rising for: net rents exclusive of heating expenses (1.6 percent); maintenance and repair of vehicles (3.2 percent); and catering services in restaurants, cafes and the like (2.2 percent). Meantime, consumers paid less for  telecommunication services (-0.7 percent) and package holidays (-1.1 percent).
 
On a monthly basis, the consumer price index was unchanged, following a 0.4 percent gain in March. Prices advanced for: energy (1.7 percent), particularly for heating oil (5.4 percent) and motor fuels (3.3 percent), including super-grade petrol (3.6 percent) and diesel fuel (2.6 percent). Also, prices increased for tobacco products (2.0 percent) and food (0.1 percent), especially for fruit (0.6 percent) and confectionery (0.6 percent). By contrast, prices fell for: vegetables (-0.5 percent); dairy products (-0.5 percent); dental services (-1.1 percent), gardening products and consumer goods (-0.9 percent) and telephones (-0.8 percent).
  
The harmonised index of consumer prices rose 1.4 percent from the previous year, but fell 0.1 percent from the previous month.
 






Tuesday May 15 2018
German Q1 GDP Growth Weakest in 1-1/2 Years
Destatis l Rida | rida@tradingeconomics.com

The German economy expanded a seasonally-adjusted 0.3 percent on quarter in the three months to March 2018, following a 0.6 percent growth in the previous period and missing market expectations of 0.4 percent, a preliminary estimate showed. It was the slowest pace of expansion since the third quarter of 2016, when growth was also 0.3 percent.

Still, it was the 15th consecutive quarter of growth, making this Germany's longest upswing since 1991. Positive contributions were made by domestic demand, driven by fixed capital formation, especially in construction but also in machinery and equipment. Also, households slightly increased their final consumption expenditure at the beginning of the year.

Government final consumption expenditure, however, decreased for the first time in just under five years and had a downward effect on economic growth. Also, according to provisional calculations, development of foreign trade was less dynamic because both exports and imports decreased on the previous quarter. 

Year-on-year, the economy expanded a calendar-adjusted 2.3 percent in the first quarter, easing from a 2.9 percent growth in the previous three-month period and missing market expectations of 2.4 percent. On an unadjusted basis, the GDP rose by 1.6 percent, also below market consensus of 1.8 percent.





Tuesday May 08 2018
German Trade Surplus Little-Changed in March
Destatis | Rida | rida@tradingeconomics.com

The German trade surplus came in at EUR 25.2 billion in March of 2018, little-changed from the previous year's EUR 25.1 billion, as exports fell less than imports.

Exports fell 1.8 percent from a year earlier to EUR 116.1 billion in March, as sales to countries outside the EU declined by 5.9 percent to EUR 47.4 billion. In contrast, sales to the EU grew by 1.3 percent to EUR 68.7 billion, as an increase in exports to Euro area countries (4.4 percent to EUR 44.2 billion) offset a decline to other European countries (-3.9 percent to EUR 24.5 billion). 

Imports declined at a faster 2.3 percent to EUR 90.9 billion, with purchases from countries outside the EU dropping by 5.9 percent to EUR 37.5 billion. Meantime, imports from the EU rose 0.4 percent to EUR 53.3 billion, driven by purchases from Euro area countries (1.7 percent to EUR 35.0 billion) while those from other European countries fell (-2 percent to EUR 18.3 billion). 

On a seasonally adjusted basis, the trade surplus increased to EUR 22 billion in March from an upwardly revised EUR 19.4 billion in the previous month and above market expectations of EUR 19.8 billion. Exports grew by 1.7 percent while imports dropped unexpectedly by 0.9 percent.

Considering the first quarter of the year, the non-adjusted trade surplus widened to EUR 61 billion from EUR 59.6 billion in the same period 2017.





Monday April 30 2018
German Inflation Rate Steady at 1.6% in April
Destatis | Joana Ferreira | joana.ferreira@tradingeconomics.com

The German consumer price inflation is expected to remain unchanged at 1.6 percent year-on-year in April 2018, in line with market expectations. Prices of food and energy are set to rise at a faster pace, while services inflation should slow.

Prices of goods are expected to advance by 1.6 percent year-on-year in April, compared with 1.4 percent in March, as inflation is set to pick up for both food (3.4 percent vs 2.9 percent) and energy (1.2 percent vs 0.5 percent). Meanwhile, services price inflation is likely to decrease to 1.5 percent from 1.8 percent in the previous month, with cost of rents advancing by 1.6 percent, the same pace as in March.

On a monthly basis, consumer prices are set to remain unchanged, after a 0.4 percent advance in March and slightly above market expectations of a 0.1 percent fall.

The harmonised index of consumer prices is expected to rise by 1.4 percent from the previous year; but decline by 0.1 percent from the previous month.


Friday April 27 2018
German Jobless Rate Lowest Since July 1980
Destatis l Rida Husna | rida@tradingeconomics.com

Germany's seasonally adjusted harmonised unemployment rate fell to 3.4 percent in March 2018 from 3.5 percent in the previous month. It was the lowest jobless rate since July 1980, as the number of unemployed declined further while employment went up slightly.

Compared with the previous month, the number of unemployed people declined by 0.7 percent to 1.48 million, while employment increased by 0.1 percent to 41.62 million.

Compared with March 2017, unemployment dropped by 10.8 percent from 1.66 million people and employment rose by 0.8 percent from 41.30 million.

Youth unemployment rate fell slightly to 6.1 percent in March from 6.2 percent in the previous month. It was the lowest rate since March1992.

Separate data from the Labour Office showed the number of unemployed fell by 7 thousand from the previous month to 2.370 million in April 2018, compared with market consensus of a 15 thousand drop. The unemployment rate was unchanged at 5.3 percent in April, the lowest level since German reunification in 1990.




Friday April 13 2018
German Inflation Rate Confirmed at 1.6% in March
Destatis l Rida Husna | rida@tradingeconomics.com

German consumer price inflation rose to 1.6 percent year-on-year in March 2018 from a 15-month low of 1.4 percent in the previous month and matching the preliminary estimate. Cost increased at a faster pace for services, energy and food.

In March, prices of goods rose by 1.4 percent year-on-year, compared to 1 percent in the preceding month, as prices went up more than in a month earlier for energy and food. Prices also increased for newspapers and periodicals (4.8 percent) and tobacco products (4.5 percent) and beer (3.5 percent). Meantime, cost fell for consumer electronics (-3.9 percent) and information processing equipment (-3.5 percent).

Energy prices were up 0.5 percent, after a 0.1 percent rise in a month earlier. Prices increased mainly for: heating oil (5.4 percent); electricity (1.5 percent) and charges for central and district heating (0.8 percent). In contrast, consumers paid less for: solid fuels (-1.6 percent); gas (-1.4 percent) and  motor fuels (-0.7 percent).

Cost of food rose by 2.8 percent (from 1.1 percent in February). Price increases were observed for: edible fats and oils (14.9 percent); dairy products (10.4 percent and fruit (7.4 percent). On the other hand, vegetable prices fell by 6.6 percent.

Cost of services rose 1.8 percent (from 1.6 percent in a month earlier), with prices rising for: net rents exclusive of heating expenses (1.6 percent); maintenance and repair of vehicles (3.2 percent); package holidays (3.2 percent) and catering services (2.2 percent). Meantime, consumers paid less for  telecommunication services (-0.7 percent).

On a monthly basis, the consumer price index went up by 0.4 percent, following a 0.5 percent gain in February. Prices advanced for: clothing (5.8 percent) and footwear (4.4 percent); package holidays (2 percent) and air tickets (1.5 percent). Also, prices increased for food (0.2 percent), especially for edible fats and oils (4.9 percent, including butter: 8.1 percent), fish and fish products (1.1 percent), while prices of vegetables went down slightly (–0.5 percent, including tomatoes: –1.6 percent; butterhead lettuce or iceberg salad: –0.8 percent). On the other hand, cost of energy fell by 0.6 percent, particularly for motor fuel prices (–2.1 percent, including supergrade petrol: –2.4 percent, diesel fuel: –1.3 percent).

The harmonised index of consumer prices rose by 1.5 percent from the previous year and by 0.4 percent month-over-month.


Monday April 09 2018
German Trade Surplus Narrows in February
Destatis l Rida Husna | rida@tradingeconomics.com

The German trade surplus fell to EUR 18.4 billion in February of 2018 from EUR 19.8 billion in the same month a year earlier, as exports rose less than imports.

In February, exports rose 2.4 percent year-on-year to EUR 104.7 billion. Sales to the EU grew by 3.5 percent to EUR 63.2 billion, of which Euro area countries (5.3 percent to EUR 40.1 billion) and other European countries (0.4 percent to EUR 23.1 billion). Also, sales to countries outside the EU grew by 0.9 percent to EUR 41.5 billion.

Imports increased at a faster 4.7 percent to EUR 86.3 billion. Purchases from the EU rose 4.4 percent to EUR 49.9 billion, of which Euro area countries (5 percent to EUR 32.5 billion) and other European countries (3.4 percent to EUR 17.3 billion). Also, purchases from countries outside the EU increased by 5 percent to EUR 36.4 billion. 

On a seasonally adjusted basis, the trade surplus fell to EUR 19.2 billion from EUR 21.3 billion in the previous month and below market expectations of EUR 21.4 billion. Exports fell 3.2 percent, the steepest decline since August 2015, on the back of the recent strengthening of the euro and below market forecasts of 0.2 percent gain. Meanwhile, imports dropped 1.3 percent, also missing market consensus of a 0.3 percent rise.

In January to February, the non-adjusted trade surplus widened slightly to EUR 35.7 billion from EUR 34.4 billion in the same period of 2017.


Thursday March 29 2018
German March Inflation Rate Weaker than Expected
Destatis | Joana Ferreira | joana.ferreira@tradingeconomics.com

The German consumer price inflation is expected to pick up to 1.6 percent year-on-year in March 2018 from a 15-month low of 1.4 percent in the previous month, but below market consensus of 1.7 percent. Prices should rise at a faster pace for services, energy and food.

Services price inflation is likely to increase to 1.8 percent year-on-year in March from 1.6 percent in the previous month, with cost of rents advancing by 1.6 percent, the same pace as in February. In addition, prices of goods are expected to advance by 1.4 percent, compared to 1 percent gain in the previous month, as inflation is set to pick up for both energy (0.5 percent vs 0.1 percent) and food (2.9 percent vs 1.1 percent).

On a monthly basis, consumer prices are set to increase by 0.4 percent, after a 0.5 percent advance in February and slightly below market expectations of 0.5 percent.

The harmonised index of consumer prices is expected to rise by 1.5 percent from the previous year and by 0.4 percent from the previous month.


Thursday March 29 2018
German Jobless Rate Unchanged at 37-Year Low
Destatis l Rida Husna | rida@tradingeconomics.com

Germany's seasonally adjusted harmonised unemployment rate stood at 3.5 percent in February 2018, the same as a downwardly revised figure in the previous month. It remained the lowest jobless rate since September 1980.

Compared with the previous month, the number of unemployed people declined by 0.7 percent to 1.51 million from 1.52 million, while employment was almost unchanged at 41.61 million.

Compared with February 2017, unemployment dropped by 10.1 percent from 1.68 million people and employment rose by 0.8 percent from 41.29 million.

Youth unemployment rate fell to 6.2 percent in February from 6.3 percent in the previous month. It was the lowest rate since April 1992.

Separate data from the Labour Office showed the number of unemployed fell by 19 thousand from the previous month to 2.373 million in March 2018. The adjusted unemployment rate fell to 5.3 percent from 5.4 percent in February, hitting the lowest level since German reunification in 1990.


Wednesday March 14 2018
German Inflation Confirmed at 15-Month Low in February
Destatis l Rida Husna | rida@tradingeconomics.com

German consumer prices rose by 1.4 percent year-on-year in February 2018, following a 1.6 percent rise in the prior month and matching the preliminary estimate. It was the lowest inflation rate since November 2016, due to a marked slowdown in cost of food and energy.

In February, prices of goods rose by 1.0 percent year-on-year, compared to 1.5 percent in the preceding month, as prices of energy and food went up much softer. Prices also increased for newspapers and periodicals (4.7 percent) and tobacco products (4.5 percent). Meantime, cost fell for information processing equipment (-3 percent) and consumer electronics (-2.4 percent). 

Energy prices were up 0.1 percent, after a 0.9 percent rise in a month earlier. Prices increased mainly for electricity (1.5 percent) and charges for central and district heating (1.3 percent). In contrast, consumers paid less for gas (-1.4 percent); motor fuels (-0.6 percent) and heating oil (-0.2 percent).

Cost of food went up by 1.1 percent (from 2.9 percent in January). Price increases were observed for dairy products (10.2 percent; edible fats and oils (8.9 percent) and fruit (6.7 percent). On the other hand, vegetable prices were sharply down (-17.1 percent).

Cost of services rose 1.6 percent, the same as in January, with prices rising for: net rents exclusive of heating expenses (1.6 percent); maintenance and repair of vehicles (3.1 percent) and catering services (2.2 percent). Meantime, consumers paid less for  telecommunication services (-0.8 percent).

On a monthly basis, the consumer price index went up by 0.5 percent, after a 0.7 percent fall in January. Prices advances for: package holidays (10.3 percent); cut flowers (4.9 percent); clothing (3.4 percent) and beer (1.8 percent). By contrast, cost fell for energy (-0.5 percent) and food (-0.2 percent). 

The harmonised index of consumer prices rose by 1.2 percent from the previous year and by 0.5 percent month-over-month.