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- Germany's consumer price index rose in line with forecasts in March
Germany's consumer price index rose in line with forecasts in March
According to the report from the Federal Statistical Office (Destatis), the inflation rate in Germany, measured as the year-on-year change in the consumer price index, stood at +1.7% in March 2021. The inflation rate was positive for the third month in a row after the temporary reduction of the value added tax rates had ended, and it increased once again (February 2021: +1.3%). Destatis also reports that consumer prices rose by 0.5% compared with February 2021.
The prices of goods (total) rose by 1.9% from March 2020 to March 2021. Energy product prices were 4.8% higher than a year earlier. Following the +0.3% rise in February 2021, the year-on-year price increase accelerated markedly. Higher prices than in March 2020 were recorded especially for heating oil (+19.4%) and motor fuels (+12.7%) in March 2021. Natural gas prices also increased on a year earlier (+2.2%), and electricity prices remained nearly unchanged (0.1%). Food prices rose by 1.6%. Higher prices were recorded in particular for fruit and dairy products (+2.5% each). Marked price rises were also observed for tobacco products (+4.3%), although with a lower weight, while notable decreases were recorded, for instance, for mobile phones (-8.2%).
The marked year-on-year increase in energy product prices had an upward effect on the inflation rate. Excluding energy prices, the inflation rate would have been +1.4% in March 2021; excluding the prices of heating oil and motor fuels, it would have been only +1.3%.
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