Consumer prices in Germany rose in line with forecasts in December

Federal Statistical Office (Destatis) said, in December 2019, consumer price index rose by 0.5% compared with November 2019. The increase was largely attributable to the seasonally higher prices of package holidays (+21.1%).

Consumer prices as a whole were up 1.5% in December 2019 compared with December 2018. Hence the inflation rate increased at the end of the year (November and October 2019: +1.1% each). The higher inflation rate as compared with the previous months was mainly attributable to the development of energy prices, which in December 2019 were only 0.1% lower year on year (November 2019: -3.7% compared with November 2018). Excluding energy prices, the rate of inflation would have been 1.8% in December 2019. Food prices rose by 2.1% between December 2018 and December 2019. Markedly higher prices were recorded for meat and meat products (+5.5%).

The prices of services (total) were up 1.8% over the same period. Among services, net rents exclusive of heating expenses were up 1.5%.

Destatis also reports that consumer prices in Germany rose by 1.4% in 2019 on an annual average basis compared with 2018. Year-on-year rate of price increase was lower in 2019 than in the previous year (2018: +1.8%).