German consumer price growth accelerated in July, as expected

According to the report from Destatis, сonsumer prices in Germany were up 1.7% in July 2019 compared with July 2018. Destatis also reports that the inflation rate was slightly up (June 2019: +1.6%). Compared with June 2019, the consumer price index rose by 0.5% in July 2019.

Energy product prices increased above average by 2.4% from July 2018 to July 2019 (June 2019: +2.5%) and had an upward effect on the inflation rate, as had been the case in the previous month. Food prices rose above average (+2.1%) in July 2019 year on year. The price increase accelerated markedly on the previous month (June 2019: +1.2%). The prices of goods (total) were by 1.8% higher in July 2019 than in the same month a year earlier. Compared with goods prices, the prices of services rose somewhat less strongly year on year (+1.5%) in July 2019. A major factor contributing to the development of service prices was the increase in net rents exclusive of heating expenses (+1.4%). 

A separate report from Destatis showed that selling prices in wholesale trade fell by 0,1% in July 2019 from the corresponding month of the preceding year. In June 2019 and in May 2019 the annual rates of change had been +0,3% and +1,6%, respectively. From June 2019 to July 2019 the index fell by 0.3%.