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- German consumer price growth slowed in March
German consumer price growth slowed in March
According to the report from Federal Statistical Office (Destatis), the inflation rate in Germany, measured as the year-on-year change in the consumer price index, stood at +1.4% in March 2020. This means that the inflation rate was down (January and February 2020: +1.7%).
The prices of goods (total) rose by 1.3% from March 2019 to March 2020, which was below average. It was mainly due to a decrease of energy product prices by 0.9%. The sharpest decline was recorded for heating oil prices (-19.6%) due to the oil price slump in the world market observed since the beginning of the year. Consumers also benefited from lower motor fuel prices (-3.3%). Excluding heating oil and motor fuel prices, the inflation rate would have been +1.6% in March 2020.
The prices of services (total) were up 1.4% in March 2020 compared with March 2019. Net rents exclusive of heating expenses, which are important as they account for large part of household final consumption expenditure, rose by 1.5%.
Compared with February 2020, the consumer price index rose by 0.1% in March 2020. However, energy prices declined by 2.2%, especially prices of heating oil (-10.1%) and motor fuels (-4.7%). In contrast, seasonally higher prices had to be paid for clothing (+4.0%).
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