German Inflation Rate Confirmed at 1-1/2 Year Low


The inflation rate in Germany was confirmed at 1.2 percent year-on-year in September 2019, down from 1.4 percent in the previous month. This was the lowest inflation rate since February 2018, as energy prices fell while food inflation eased.

Goods prices rose 0.6 percent in September, easing from a 1.3 percent rise in the previous month, mainly due to a fall in energy prices (-1.1 percent vs 0.6 percent) and a slowdown in food inflation (1.3 percent vs 2.7 percent). Meantime, prices were markedly up for newspapers and periodicals (5.1 percent), tobacco products (4.3 percent) and new passenger cars (2.4 percent). However, prices of other goods were down, in particular those of consumer electronics (-8.9 percent) and telephones (-5.8 percent).
 
Energy prices fell 1.1 percent in September, after a 0.6 percent rise in August. There were increases in prices of district heating (4.7 percent), natural gas (4.7 percent), and electricity (3.9 percent), while costs fell for heating oil (-10.5 percent), and motor fuels (-6.7 percent).
 
Food inflation eased to 1.3 percent from 2.7 percent in a month earlier. Prices were markedly higher year-on-year particularly for meat and meat products (4.6 percent), as well as fish products and seafood (3.2 percent). In contrast, prices dropped for edible fats and oils (-13.4 percent).
 
Meanwhile, services inflation pick up to 1.8 percent from 1.6 percent. This was mainly attributable to the increase in net rents exclusive of heating expanses (1.4 percent vs 1.3 percent), as household spend a large part of their consumption expenditure on this item. Also, price increases were observed for services of social facilities (4.9 percent), maintenance and repair of vehicles (5.0 percent) and catering services in restaurants, cafes and the like (2.8 percent, air tickets (4.3 percent), and hairdresser service and other services for personal care (3.2 percent). By contrast, prices of primary and primary education services fell 4.3 percent.
 
On a monthly basis, consumer prices showed no growth, following 0.2 percent decline in August. Prices increased for both clothing (7.2 percent) and foot wear (2.7 percent).There were sizeable price decreases in package holidays (-10.3 percent) and air tickets (-2.2 percent).
 
The harmonised index of consumer prices rose 0.9 percent from the previous year (vs 1.0 percent in August); and fall 0.1 percent month-over-month (the same pace as in August).
 
 
 
 
 


German Inflation Rate Confirmed at 1-1/2 Year Low


Federal Statistical Office l Chusnul Ch Manan | chusnul@tradingeconomics.com
10/11/2019 9:15:57 AM