Germany Inflation Rate Confirmed at 1.2% in February

German consumer prices rose at a slower 1.2 percent in February of 2014, down from 1.3 percent in the previous month and confirming the preliminary estimate released later in February.

The lower inflation rate was again due to the downward price trend for mineral oil products (−6.8 percent on February 2013, of which heating oil: −8.7 percent; motor fuels: −6.3 percent). In contrast, prices were up especially for electricity (+2.3 percent) and solid fuels (+3.7 percent). The prices of energy in general were down 2.7 percent.

The rise in food prices (+3.5 percent) was again markedly higher than the overall inflation rate. Consumers had to pay more than a year earlier especially for edible fats and oils (+10.3 percent) and dairy products (+10.9 percent). 

Prices of goods rose by 0.6 percent. Prices were markedly up not only for food but also, for example, for newspapers, books and stationery (+4.0 percent) and tobacco products (+4.5 percent). Apart from energy, prices were down for coffee (−3.7 percent), information processing equipment (−7.8 percent; including portable computers: −11.6 percent), consumer electronics (−4.8 percent) and photographic and cinematographic equipment (−3.5 percent).

Prices of services rose by 1.8 percent, mainly due to the rise in net rents exclusive of heating expenses (+1.5 percent). Marked price increases were recorded, among other things, for transport association tickets (+3.2 percent), hairdresser services (+4.3 percent) and games of chance (+20.9 percent).

From January to February, consumer prices rose 0.5 percent mainly due to seasonal factors. Among services, prices were up especially for package holidays (+10.4 percent). Among goods, clothing prices rose considerably (+3.6 percent). A major reason here was the transition from the winter collection to the spring collection and the end of seasonal sales. Prices of cut flowers, too, were markedly up in February 2014 on January 2014 (+4.9 percent).

The EU harmonized inflation slowed to 1 percent in February from 1.2 percent in January and gained 0.5 percent on a monthly basis.

Germany Inflation Rate Confirmed at 1.2% in February

DESTATIS | Joana Taborda |
3/14/2014 9:24:55 AM