German CPI Rose 1.3% In January As Expected By Consensus Estimates; Month-On-Month Inflation Too Reported On Expected Lines

on February 13 2014 3:43 AM
Germany_Santa Claus
Workers put a huge inflatable Santa Claus figure in place on top of a shopping centre near highway A 5 between Darmstadt and Frankfurt, on Nov. 24, 2011. Reuters/Kai Pfaffenbach

Consumer price inflation, or CPI, in Germany rose by 1.3 percent in January 2014 over the same period in the previous year, data from the Federal Statistical Office showed Thursday. Compared with December 2013, the consumer price index fell by 0.6 percent in January 2014, also on expected lines.

In December 2013, CPI had stood at 1.4 percent, indicating a modest dip in rise in prices for January, mainly attributed to a drop in the price of heating oil and motor fuels, the official statement said.

“The rise in food prices (+3.6%) in January 2014 was again markedly higher than the overall inflation rate,” the statement said, adding: “Contrary to the consumer-friendly price development for mineral oil products, prices were up in January 2014 especially for electricity (+2.5%) and solid fuels (+2.4%) compared with a year earlier."

The data also showed a decrease in prices in January due to seasonal variations such as in the prices of package holidays, which dropped by 17.3 percent, while prices of air tickets fell by 4.1 percent, compared to the vacation month of December.

“As shops gave discounts on winter goods, prices were also down on the preceding month for clothing (–4.8%) and footwear (-3.3%),” the statement added.

The harmonized index of consumer prices, or HICP, for Germany, rose by 1.2 percent in January 2014 over the same month in 2013. However, the HICP fell by 0.7 percent in January compared with December 2013, the data showed.

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