Germany’s Inflation Rate Confirmed at 1.2% in October

In October, German annual inflation was recorded at 1.2 percent, down from 1.4 percent in September and reaching its lowest rate since August of 2010. The deceleration is mainly driven by lower energy prices.

The moderate inflation rate was mainly due to the price development of mineral oil products (−7.0 percent, on annual basis). The marked year-on-year price decrease for both heating oil (−10.4 percent) and motor fuels (−5.8 percent) had a downward effect on the overall inflation. Not considering mineral oil prices, the inflation rate in October 2013 would have been +1.7 percent. Contrary to the favorable price development of mineral oil products, especially electricity prices (+11.5 percent) were considerably up.

The increase in food prices in October 2013 (+4.2 percent) was again markedly higher than the overall inflation rate. Consumers had to pay more than a year earlier especially for edible oils and fats (+14.0 percent; including butter: +28.0 percent) and for dairy products and eggs (+8.5 percent; including UHT milk: +19.9 percent; curd: +13.4 percent; yoghurt: +6.6 percent).

In October of 2013, the prices of goods and services were up 1.2 percent each compared with October of 2012.

Compared with September of 2013, the consumer price index declined by 0.2 percent.

Germany’s Inflation Rate Confirmed at 1.2% in October

Destatis | Krisztina Györffy |
11/12/2013 9:16:03 AM