German July Inflation Rate Confirmed at 2%
Germany’s annual inflation rate was confirmed at 2 percent in July 2018, slightly below the previous month's 2.1 percent. Food inflation eased while prices of services and energy rose at a faster pace.
Prices of goods rose at a softer 2.4 percent in July, compared with 2.8 percent in the previous month, as food inflation slowed while energy prices rose further. Prices also increased for newspapers and periodicals (4.8 percent), beer (4.0 percent) and tobacco products (3.5 percent). However, prices were down for consumer electronics (-5.5 percent), information processing equipment (-4.2 percent), clothing (-2.0 percent).
Cost of food and non-alcoholic beverages rose 2.5 percent, following a 3.2 percent increase in June. Price increases were observed for all categories, especially edible fats and oils (6.4 percent), of which fruit (5.5 percent); dairy products and eggs (4.0 percent), and vegetables (3.1 percent).
Energy prices went up 6.6 percent, after a 6.4 percent rise in June. Prices increased mainly for: heating oil (28.5 percent); motor fuels (12.0 percent); electricity (1.0 percent); and charges for central and district heating (1.5 percent). In contrast, gas prices dropped 1.3 percent.
Services inflation picked up to 1.6 percent in July from 1.5 percent in June. Upward pressure came from: package holidays (4.2 percent); net rents exclusive of heating expenses (1.6 percent); maintenance and repair of vehicles (3.0 percent); and catering services in restaurants, cafes and the like (2.2 percent). Meantime, consumers paid less for air tickets (-6.9 percent).
On a monthly basis, the consumer price index increased by 0.3 percent in July, compared to a 0.1 percent rise in June and in line with earlier estimates. Marked seasonal price increases on the previous month were recorded for air tickets (4.4 percent), package holidays (19.3 percent) Meantime, energy prices were down 0.1 percent, especially due to heating oil (-0.8 percent) and motor fuels (-0.2 percent). In addition, food prices fell 0.5 percent in July, as prices were down especially for fruit (-2.2 percent) and vegetables (-1.2 percent). Also, month-on-month price decreases were recorded for clothing (-6.9 percent) and footwear (-4.1 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 0.4 percent month-on-month.
8/14/2018 11:31:46 AM