German consumer prices eased year-on-year in September on fall in energy product prices

German consumer prices came in at 1.2 percent year-on-year in September. According to the Federal Statistical Office, the inflation rate – as measured by the consumer price index – decreased again, with the prior month’s print at 1.4 percent. On a sequential basis, the consumer prices stayed the same in September.

Energy product prices dropped 1.1 percent year-on-year and had a downward effect on the overall price development. The rate of energy price rise had been 0.6 percent in August. In September 2019, year-on-year price rises were recorded especially for district heating and natural gas. On the contrary, prices were noticeably down for both heating oil and motor fuels. Stripping energy prices, the inflation rate in September might have been 1.4 percent; excluding the prices of mineral oil products, it would have been 1.6 percent.

Food prices rose 1.3 percent year-on-year. The rise in food prices thus decelerated from August’s year-on-year print of 2.7 percent. Prices were noticeably higher year-on-year especially for meat and meat products.

Prices of goods rose 0.6 percent year-on-year. Apart from the rather moderate rise in food prices, prices were noticeably up, among other things, for newspapers and periodicals, tobacco products and new passenger cars.

Meanwhile, service prices rose much more strongly at 1.8 percent year-on-year. A major factor contributing to the development of service prices was the rise in net rents exclusive of heating expenses, as households spend a large part of their consumption expenditure on this item. Larger price increases were observed for the maintenance and repair of vehicles, services of social facilities, air tickets, hairdresser services and other services for personal care. The prices of some services dropped.