Germany Inflation Rate Confirmed at 0.8% in August

German annual inflation rate rose to 0.8 percent in August of 2014, unchanged from the previous month and matching preliminary estimate, mainly due to decreasing energy prices.

Energy prices fell 1.9 percent year-on-year in August. Prices were down in particular for mineral oil products (–4.6 percent, of which heating oil: –5.0 percent; motor fuels: –4.4 percent). Prices of solid fuels (–2.5 percent) and charges for central and district heating (–1.5 percent) were lower than a year earlier. Electricity prices, however, rose 1.7 percent.

Food prices increased 0.3 percent from August of 2013. Prices were markedly higher than a year earlier again for dairy products (+8.4 percent, including curd: +13.9 percent; sliced cheese: +13.8 percent; yoghurt: +6.9 percent). Higher prices were also recorded for confectionery (+1.9 percent), bread and cereals (+1.5 percent) and fish and fish products (+1.3 percent). Price decreases were observed for vegetables (–7.2 percent, including potatoes: –30.0 percent; peppers: –18.0 percent; tomatoes: –7.0 percent). Consumers paid less also for edible oils and fats (–4.5 percent) and fruit (–2.0 percent).

Costs of health care rose 2.5 percent and prices of services went up 1.4 percent. Higher prices were also seen for clothing and footwear (up 1.9 percent), while cost of housing, water, electricity, gas and other fuels rose 0.9 percent.Cost of education and communication fell 2.8 percent and 1.4 percent respectively.

Compared with July 2014, consumer prices remained unchanged in August 2014. The month-on-month comparison showed a particular increase in prices of clothing and footwear (+2.6 percent, clothing: +3.2 percent), especially because of the gradual changeover to the autumn/winter season.

The harmonised index of consumer prices (HICP) rose by 0.8 percent in August of 2014 over the same month last year. Thus, for the fourth time this year, an inflation rate of under 1 percent was determined for the HICP. Compared with the previous month, the index remained unchanged in August 2014. The HICP estimates were thus confirmed.

Germany Inflation Rate Confirmed at 0.8% in August

9/11/2014 12:55:44 PM