Germany’s inflation rate was confirmed at 2 percent in April 2019, up from an 11-month low of 1.3 percent in the previous month. It was the highest inflation rate since November, as services, energy and food prices rose at a faster pace.
Goods prices advanced 1.8 percent year-on-year in April (vs 1.6 percent in March), as both energy and food prices rose at a faster pace. Gains were also recorded for other goods such as newspapers and periodicals (4.8 percent) and tobacco products (3.6 percent). Meanwhile, lower prices were recorded for consumer electronics (-6.8 percent), led by telephones (-6.7 percent).
Energy prices advanced 4.6 percent (vs 4.2 percent in March), boosted by heating oil (9.4 percent), motor fuels (5.4 percent), district heating (5.3 percent), natural gas (3.2 percent) and electricity (3.0 percent).
Food cost increased 0.8 percent in April, accelerating from a 0.7 percent rise in March. Vegetable prices increased substantially (9.7 percent), followed by fish and fish products (2.6 percent) and for bread and cereals (2.3 percent). In contrast, fruit prices declined sharply (-8.4 percent), as well as prices of edible fats and oils (-1.9 percent), dairy products and eggs (-1.3 percent) and also sugar, jam, honey and other confectionery (-1.0 percent).
Services inflation increased to 2.1 percent from 1.2 percent, with the cost of rents advancing by 1.4 percent, the same as in the prior month. This was mainly attributable to increases in travel service prices, in particular package holiday prices (11.2 percent), long-distance bus journeys (13.6 percent), air tickets (6.1 percent) and rail tickets (3.4 percent). In addition, price increases were observed for services of social facilities (5 percent), maintenance and repair of vehicles (4.3 percent) and catering services in restaurants, cafes and the like (2.6 percent). A major factor contributing to the development of service prices was also the increase in net rents exclusive of heating expenses (1.4 percent), as households spend a large part of their consumption expenditure on this item.
On a monthly basis, the consumer price index jumped 1 percent in April, following a 0.4 percent gain in March. This was mainly due to price rises for package holidays (15.9 percent). Passengers paid also markedly more for long-distance bus journeys (14.8 percent), air tickets (3.6 percent) and rail tickets (3.4 percent). Motor fuel prices, too, were up 4.9 percent. The prices of energy (total) increased by 2.1 percent month on month.
The harmonised index of consumer prices rose 2.1 percent from the previous year (vs 1.4 percent in March); and 1.0 percent month-over-month (vs 0.5 percent in March).
Federal Statistical Office | Chusnul Ch Manan | chusnul@tradingeconomics.com
5/14/2019 10:02:44 AM