German May Inflation Rate Confirmed at 15-Month High


German consumer price inflation rate stood at 2.2 percent year-on-year in May 2018, unchanged from the preliminary estimate and above the previous month's figure of 1.6 percent. It was the highest rate since February 2017, due to a jump in energy prices and a faster rise in cost of services and food.

Prices of goods rose 2.5 percent year-on-year in May, faster than a 1.6 percent advance in April, as cost of both energy and food rose at a faster pace. Prices also increased for newspapers and periodicals (4.6 percent), tobacco products (4.4 percent) and gardening products and consumer goods (3.7 percent). However, prices were down for some goods such as information processing equipment (-4.2 percent) and consumer electronics (-4.0 percent).

Energy prices jumped 5.1 percent, after a 1.3 percent rise in a month earlier. Prices increased mainly for: heating oil (24.3 percent); motor fuels (8.2 percent); electricity (1.5 percent); and charges for central and district heating (0.5 percent). In contrast, consumers paid less for both solid fuels (-1.5 percent) and gas (-1.1 percent).

Cost of food and non-alcoholic beverages rose 3.4 percent in May, following a 3.3 percent increase in April. Price increases were observed for all categories, especially edible fats and oils (16.5 percent), of which butter (32.3 percent); fruit (8.1 percent); and dairy products and eggs (5.5 percent).

Services inflation rose to 1.9 percent in May  from 1.5 percent in a month earlier, boosted by higher prices of: net rents exclusive of heating expenses (1.6 percent); package holiday (10.4 percent); maintenance and repair of vehicles (3.2 percent); and catering services in restaurants, cafes and the like (2.2 percent). Meantime, consumers enjoyed lower prices of air tickets (-2.3 percent), telecommunication services (-0.8 percent) and dental services (-0.3 percent).

On a monthly basis, the consumer price index went up 0.5 percent, compared to a flat reading in April. Prices increased for: energy (2.2 percent), particularly heating oil (7.6 percent) and motor fuels (4.8 percent); food (0.2 percent), especially edible fats and oils (3.2 percent), of which butter (6 percent), vegetables (1.9 percent); fruit (0.7 percent) and meat and meat products (0.5 percent). In contrast, prices fell for: dairy products (-2.2 percent); and confectionery (-0.3 percent).
  
The harmonised index of consumer prices rose 2.2 percent from the previous year, and by 0.6 percent month-on-month.

German May Inflation Rate Confirmed at 15-Month High


Destatis | Rida | rida@tradingeconomics.com
6/14/2018 9:43:43 AM