Consumer prices in Germany were 2.2% higher in February 2017 y/y, as expected

Consumer prices in Germany were 2.2% higher in February 2017 than in February 2016. The inflation rate as measured by the consumer price index continued to increase (January 2017: +1.9%; December 2016: +1.7%). An inflation rate of more than two percent was last recorded in August 2012 (also +2.2%). Compared with January 2017, the consumer price index rose by 0.6% in February 2017. The Federal Statistical Office (Destatis) thus confirms its provisional overall results of 1 March 2017.

Energy prices as a whole were markedly up in February 2017 compared with a year earlier (+7.2%) and again had a strong upward effect on the overall inflation rate. The price increases for energy in recent months (January 2017: +5.9%; December 2016: +2.5%) were mainly due to the low level of energy prices a year ago. In 2016, the lowest level was reached in February 2016. As a result of this base effect, the prices of especially heating oil (+43.8%) and motor fuels (+15.6%) were markedly up in February 2017 compared with a year earlier. The year-on-year price changes for other energy products were much smaller (e.g. electricity: +1.6%; gas: −3.2%; charges for central and district heating: −4.7%). Excluding energy prices, the inflation rate in February 2017 would have been +1.7%; excluding the prices of mineral oil products, it would have been only +1.5%.