Germany Inflation Rate Confirmed At 1.6% In March
German consumer prices rose by 1.6 percent year-on-year in March of 2017, compared to a 2.2 percent gain in February and matching the preliminary estimate. Prices went up at a slower pace for food, energy and services.
4/13/2017 8:44:54 AM
Year-on-year, cost of goods as a whole rose 2.5 percent, following a 3.2 percent gain in the preceding month, as prices increased at a slower pace for both energy and food.
Energy prices as a whole increased by 5.1 percent in March, following a 7.2 percent rise in February. Prices went up sharply for heating oil (25.2 percent), followed by motor fuels (11.9 percent) and electricity (1.5 percent). In contrast, cost fell for gas (-3.3 percent). Excluding energy prices, the inflation rate would have been 1.2 percent; and excluding the prices of mineral oil products, it would have been only 1 percent.
Prices of food and non-alcoholic beverages rose 2.2 percent, after gaining 4.1 percent in the previous month. Prices increased markedly for: Edible fats and oils (16.5 percent); fish and fish products (4.2 percent); vegetables (4 percent); and dairy products (3.1 percent). Also, significant price increases were also recorded for other food groups such as meat and meat products (1.4 percent) and confectionary (1.1 percent).
In contrast, a decline was recorded for package holiday prices (-7.1 percent), due to a calender effect caused by Easter falling in mid April 2017 compared to late March in 2016.
Cost of services went up 0.7 percent in March, following a 1.3 percent gain in the prior month. Prices rose mainly for: Net rents exclusive of heating expenses (1.6 percent); catering services (1.9 percent) and insurance services (2.4 percent), while cost fell for services of social facilities (−6.4 percent).
On a monthly basis, consumer prices rose 0.2 percent, after increasing 0.6 percent in the prior month, mainly due to seasonal factors. Prices for clothing rose by 8.9 percent and those for footwear went up by 6.1 percent. By contrast, price decreases were recorded for energy (–0.9 percent) and food (–1.6 percent).
The harmonised index of consumer prices rose by 1.5 percent from the previous year and by 0.1 percent month-over-month.