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- Germany сonsumer inflation drops In January
Germany сonsumer inflation drops In January
According to the report from Destatis, compared with December 2018, the consumer price in Germany index fell markedly by 0.8% in January 2019. Consumer prices were 1.4% higher in January 2019 than in January 2018. The inflation rate – measured by the consumer price index – thus decreased (December 2018: +1.6%).
The main reason for the inflation rate being lower than in the previous month was the development of energy product prices. Energy prices rose 2.3% in January 2019 on January 2018. The increase in energy prices thus slowed again (December 2018: +4.9%; November 2018: +8.7%). A glance at the individual energy products shows that the prices of electricity, gas and other fuels were up 3.3% from January 2018 to January 2019. Motor fuel prices rose 0.3% over the same period. Excluding energy prices, the inflation rate in January 2019 would have been +1.3%.
A major reason for the 0.8% decrease in prices in January 2019 on December 2018 was seasonal factors. Especially package holiday prices (-24.6%) in January 2019 were lower than in the vacation month of December. Also, the prices of clothing (-6.0%) and footwear (-3.1%) were markedly down on the previous month, which was especially due to the discounts given on the winter collection.
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