German Inflation Rate Confirmed at 1.8% in November

German consumer prices rose by 1.8 percent year-on-year in November 2017, following a 1.6 percent rise in the prior month and matching the preliminary estimate. Cost of energy and services rose at a faster pace while food inflation slowed.
Destatis l Rida Husna | 12/13/2017 11:38:07 AM
Year-on-year, cost of services rose 1.5 percent from a year ago, following a 1.2 percent gain in October. Prices increased mainly for: net rents exclusive of heating expenses (1.7 percent); package holidays (4.9 percent); maintenance and repair of vehicles (3.7 percent); and in-patient health services (3.5 percent). Meantime, consumers paid less for insurance services for transportation (-8.9 percent) and services of social facilities (-7.4 percent) and telecommunication services (-0.6 percent).

Prices of goods increased by 2.1 percent, after a 1.9 percent rise in the preceding month, as prices of energy went up at a faster pace while food inflation slowed. Prices also increased for newspapers and periodicals (4.9 percent); tobacco products (4.6 percent); and pharmaceuticals products (2.6 percent), while cost fell for information processing equipment (-1.9 percent) and consumer electronics (-1.5 percent). 

Energy prices were up 3.7 percent, following a 1.2 percent rise in a month earlier. Prices increased especially for: mineral oil products (7.7 percent), of which heating oil (15.1 percent) and motor fuel (5.9 percent); electricity (2 percent); charges for central and district heating (1 percent); and solid fuels (0.9 percent). Only gas prices declined on a year earlier (-1.4 percent).

Food and non-alcoholic beverages prices went up by 2.8 percent, easing from a 3.8 percent increase in the prior month. Prices rose for: edible fats and oils (17.8 percent); dairy products (11.1 percent); fish and fish products (4.0 percent); meat and meat products (3.0 percent) and fruits (4.1 percent). Only the prices of vegetables were down (-3.2 percent).

On a monthly basis, consumer prices rose 0.3 percent, after showing no growth in October. Prices increased for energy (1.3 percent), especially for heating oil (5.2 percent) and motor fuels (2.6 percent). Also, cost of food rose 0.3 percent, particularly for: dairy products (3.4 percent). On the other hand, prices of edible fats and oils declined markedly (-6.0 percent); especially butter (-9.7 percent) and vegetables  (-1.6 percent). A decline was also recorded for cost of clothing and footwear (-0.7 percent) and alcoholic beverages and tobacco (-0.2 percent).

The harmonised index of consumer prices rose 1.8 percent from the previous year, compared to a 1.6 percent rise in October and matching the preliminary estimate. Compared to a month earlier, the index went up 0.3 percent.

German Inflation Rate Confirmed at 1.8% in November