Germany's annual inflation rate was revised lower to 1.5 percent in February 2019 from a preliminary estimate of 1.6 percent and compared to January's 11-month low of 1.4 percent. Food prices rose less than initially thought.
Goods prices advanced 1.7 percent year-on-year in February (vs 1.3 percent in January), due to an acceleration in energy and food prices. Price rises were also recorded for other goods, especially newspapers and periodicals (5.1 percent) and tobacco products (3.1 percent). However, prices of telephones (-7.1 percent) and consumer electronics (-6.1 percent) were lower.
Energy prices advanced 2.9 percent (vs 2.3 percent in January), boosted by heating oil (14.2 percent), electricity, gas and other fuels (4.3 percent) and motor fuels (0.1 percent).
Cost of food increased 1.4 percent, compared to a preliminary 1.5 percent and January's 0.8 percent rise. Price increases were observed for vegetables (12.2 percent), including potatoes (32.4 percent); and edible fats and oils (6.5 percent), including butter (11.1 percent). Meanwhile, fruit prices fell by 6 percent, as well as dairy products and eggs prices (-1.7 percent).
Services inflation was unchanged at 1.4 percent, with the cost of rents advancing by 1.4 percent. Additional upward pressure came from: services of social facilities (4.6 percent); maintenance and repair of vehicles (4 percent); and catering services in restaurants, cafes and the like (2.3 percent). Meantime, consumers paid less for package holidays (-3.4 percent).
On a monthly basis, the consumer price index went up 0.4 percent in February, reversing a 0.8 percent drop in January and slightly below a preliminary estimate of 0.5 percent. Package holiday prices were markedly up (10.7 percent), as well as costs for clothing (3.6 percent), plants and flowers (2.4 percent). In addition, food prices increased 0.5 percent, in particular vegetable prices (3.6 percent), and energy prices edged up 0.2 percent. A month-on-month increase in prices was recorded especially for heating oil (1.1 percent). The price of motor fuel, in contrast, was somewhat lower (-0.2 percent).
The harmonised index of consumer prices rose 1.7 percent from the previous year, the same as in January; and 0.5 percent month-over-month (vs -1 percent in January).
3/14/2019 12:44:56 PM