German June Inflation Rate Confirmed at 2.1%


German consumer price inflation rate eased to 2.1 percent year-on-year in June of 2018 from a 15-month high of 2.2 percent in the previous month and matching the preliminary estimate. Services inflation slowed; while prices of goods increased faster, mainly due to energy.

Services inflation fell to 1.5 percent in June from 1.9 percent in May. Upward pressure came from: net rents exclusive of heating expenses (1.6 percent); maintenance and repair of vehicles (3.2 percent); services of social facilities (3.1 percent) and catering services in restaurants, cafes and the like (2.2 percent). Meantime, consumers paid less for air tickets (-4.2 percent) and telecommunication services (-0.7 percent).

Prices of goods rose 2.8 percent, following a 2.5 percent advance a month earlier, as cost of energy increased at a faster pace while cost of food rose less. Prices also increased for newspapers and periodicals (4.8 percent), beer (4.1 percent) and tobacco products (3.7 percent). However, prices were down for consumer electronics (-4.9 percent) and information processing equipment (-4.5 percent).

Energy prices went up 6.4 percent, after a 5.1 percent rise in May. Prices increased mainly for: heating oil (30.3 percent); motor fuels (11.3 percent); electricity (1.2 percent); and charges for central and district heating (0.9 percent). In contrast, gas prices dropped 1.6 percent.

Cost of food and non-alcoholic beverages rose 3.2 percent, following a 3.4 percent increase in May. Price increases were observed for all categories, especially edible fats and oils (14.4 percent), of which butter (26.1 percent); fruit (7.2 percent); and dairy products and eggs (4.8 percent).

On a monthly basis, the consumer price index increased by 0.1 percent in June, compared to a 0.5 percent rise in May. Marked seasonal price increases on the previous month were recorded for air tickets (2.7 percent), package holidays (2.5 percent) and accommodation services (1.4 percent). Also, energy prices were up 0.5 percent, especially due to motor fuels cost (1.5 percent) while prices of household energy remained nearly unchanged (-0.1 percent). Meanwhile, food prices fell 0.3 percent in June, as prices were down especially for fruit and vegetables (-1.7 percent each). Consumers also benefited from slightly lower prices of meat and meat products (-0.3 percent). Also, month-on-month price decreases were recorded for clothing (-2.9 percent) and footwear (-1.3 percent), sometimes as a result of first discounts given on spring and summer articles.

The harmonised index of consumer prices rose 2.1 percent from the previous year, and by 0.1 percent month-on-month.

German June Inflation Rate Confirmed at 2.1%


Destatis | Rida | rida@tradingeconomics.com
7/12/2018 9:40:27 AM