Germany's annual inflation rate slowed to an eight-month low of 1.7 percent in December 2018 from 2.3 percent in the previous month and in line with the preliminary estimates. Energy and food prices rose at a softer pace while services inflation was steady.
Goods inflation eased to 2 percent in December from 3.2 percent in November, due to a slowdown in both of energy (4.8 percent vs 9.3 percent) and food (1.0 percent vs 1.4 percent).
Cost of food increased 1.0 percent, following a 1.4 percent increase in November. Price increases were observed for vegetables (8.1 percent); and meat (0.6 percent). Meanwhile, fruit prices fell by 5.1 percent.
On the other hand, energy prices advanced 4.8 percent, after a 9.3 percent rise in a month earlier. Prices increased mainly for: heating oil (16.1 percent); motor fuels (8.6 percent); electricity (1.0 percent). By contrast, gas prices dropped 1.4 percent.
Services cost went up 1.5 percent in December, the same pace as in the prior month, with cost of rents advancing by 1.5 percent. Upward pressure came from: maintenance and repair of vehicles (2.6 percent). Meantime, consumers paid less for pre-primary and primary education services (-12.0 percent); and telecommunication services (-0.7 percent).
On a monthly basis, the consumer price index increased by 0.1 percent in December, the same pace as a month earlier and matching preliminary estimates. Prices of energy fell by 4.2 percent, especially due to heating oil (-16.7 percent), and motor fuels (-6.4 percent). Also, price decreases were recorded for clothing (-2.0 percent). Meantime, food prices went up by 0.3 percent, mainly due to vegetables (2.3 percent); and fruit (1.3 percent).
The harmonised index of consumer prices went up by 1.7 percent from the previous year; and by 0.3 percent month-over-month.
Federal Statistical Office l Chusnul Ch Manan | chusnul@tradingeconomics.com
1/16/2019 7:53:53 AM