Consumer prices in 2017: +1.8% on the previous year

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MIL OSI – Source: Destatis Statistisches Bundesamt – In English –

Headline: Consumer prices in 2017: +1.8% on the previous year

Inflation rate at +1.7% in December 2017
WIESBADEN – Consumer prices in Germany rose by 1.8% on an annual average in 2017 compared with 2016. The increase was above the relevant levels of the past four years. Between 2014 and 2016, the year-on-year-rates of price increase were even below one percent each. The Federal Statistical Office (Destatis) also reports that the inflation rates as measured by the consumer price index ranged between +1.5% and +2.2% in the individual months of 2017. In December 2017, the inflation rate stood at +1.7%. The marked increase in the year-on-year rate of price increase in 2017 was mainly due to energy prices. Compared with 2016, energy prices increased by 3.1% in 2017 after they had declined in the previous three years (2016: –5.4%; 2015: –7.0%; 2014: –2.1%). Regarding energy products, especially the prices of heating oil (+16.0%) and motor fuels (+6.0%) were up in 2017 year on year. Declining prices were however recorded for gas (–2.8%) and charges for central and district heating (–1.5%). 

Food prices rose considerably by 3.0% in 2017 compared with 2016. On an annual average, food prices – like energy prices – had a strong upward effect on the overall inflation rate. In the years before 2017, the increase in food prices had been much smaller (2016: +0.8%; 2015: +0.8%; 2014: +1.0%). In 2017, the year-on-year rise in food prices concerned all product groups. Particular increases were recorded for edible oils and fats (+21.4%) and dairy products (+9.7%). Fish and fish products (+3.8%) and fruit (+2.7%) were much more expensive, too. Excluding energy and food prices, the inflation rate would have been +1.4% in 2017. 

The prices of goods as a whole increased by 2.2% in 2017 on a year earlier. Price increases were largest for non-durable consumer goods (+2.7%), which was mainly attributable to rises in energy and food prices. Compared with goods prices, the prices of services (total) rose rather moderately (+1.4%) in 2017. A major factor contributing to the increase in service prices was the development of net rents exclusive of heating expenses (+1.6%), as households spent a large part of their consumption expenditure on this item. While an increase in prices was for instance recorded for in-patient health services (+3.4%) and catering services (+1.9%), a decline was observed for telecommunication services (–0.9%) and services of social facilities (–6.9%). The latter decrease was mainly due to the implementation of the Act to Strengthen Long-Term Care II. 

Change in December 2017 on December 2016Compared with December 2016, consumer prices as a whole increased by 1.7% in December 2017. 

Energy prices were up 1.3% in December 2017, year on year. The increase in energy prices thus slowed markedly (November 2017: +3.7%) and had only a small impact on the overall inflation rate. In December 2017, notable year-on-year price increases were recorded for heating oil (+4.0%) and electricity (+2.0%). In contrast, consumers paid less for gas (–2.6%). Excluding energy prices, the inflation rate would have been +1.6% in December 2017. 

Food prices in December 2017 were markedly higher (+3.0%) than in December 2016 (November 2017: +3.2%) and had an upward effect on the overall inflation rate. Price increases were observed for most food product groups, especially for edible fats and oils (+16.6%), dairy products (+10.1%) and fruit (+7.6%). Vegetable prices were markedly down (–6.1%). 

Prices of goods (total) were up 1.8% in December 2017 on December 2016. A part from food prices, the prices, for instance, of newspapers and periodicals (+5.1%), tobacco products (+4.6%) and pharmaceutical products (+2.6%) rose significantly too. Lower prices were recorded, for example, for consumer electronics (-1.1%). The prices of services (total) were up 1.6% in the same period, which was mainly the result of the development of net rents exclusive of heating expenses (+1.7%). Marked price increases were observed, for instance, for package holidays (+4.2%), maintenance and repair of vehicles (+3.8%) and in-patient health services (+3.5%). However, a marked year-on-year decline in prices was recorded for insurance services for transportation (–9.0%) and services of social facilities (–7.6%). 

Change in December 2017 on November 2017Compared with November 2017, the consumer price index rose markedly by 0.6% in December 2017. As regards services, the seasonal price increases for package holidays (+20.1%) and air tickets (+4.7%) should be mentioned. Also, rail fares were up towards the end of 2017 as a result of the annual adjustments of railway fares (+2.1%, of which short-distance transport: +5.3%; long-distance transport: +1.3%). As regards goods, food prices were up +0.8% in December 2017 on the previous month, while energy prices remained nearly unchanged (–0.1%). A favourable development for consumers was that prices of clothing (–2.0%) and footwear (–1.2%) decreased towards the end of the year, in part significantly.

Consumer price index for GermanyOverall index________Year / MonthIndex2010 = 100Change onthe previousyear Change onthe previousmonthin %A = annual average–= no figures or magnitude zero2014 A106.60.9−2015 A106.90.3−2016 A107.40.5−2017 A109.31.8−2016December108.81.70.72017January108.11.9–0.6February108.82.20.6March109.01.60.2April109.02.00.0May108.81.5–0.2June109.01.60.2July109.41.70.4August109.51.80.1September109.61.80.1October109.61.60.0November109.91.80.3December110.61.70.6
Consumer price index for Germany Overall index / subindexWeighting2017 ADecember 2017Change on2016 AChange onthe sameperiod ayear earlierChange onthe precedingmonthin per millin per centA = annual averageOverall index1, and non-alcoholic-beverages102.712.82.90.8Food90.523.03.00.8Meat20.762.12.90.1Fruit8.762.77.62.3Vegetables11.260.5–6.13.9Alcoholic beverages and tobacco37.592.53.00.3Clothing and footwear44.931.41.0–1.6Housing, water, electricity, gas and other fuels317. rent exclusive of heating expenses209.931.61.70.1Household energy68.–2.8–2.60.0Heating oil11.1116.04.01.0Furnishings, household equipment and so on49.780.30.70.1Health44.441.81.80.1Transport134.732.92.10.2Motor fuels38.376.01.4–0.8Supergrade petrol28.385.50.9–1.2Diesel fuel9.–0.6–0.4–0.1Recreation and culture114.921.82.34.5Package holidays26.832.24.220.1Education8.801.21.70.0Restaurants and hotels44.672.02.10.3Miscellaneous goods and services70.040.0–0.80.0Overall index Excluding food and energy802.921.41.50.6Excluding energy (household energy and motor fuels)893.441.61.60.6Excluding heating oil and motor fuels950.521.51.60.6Goods479.772.21.80.0Non-durable consumer goods307.892.72.20.3Energy106.563.11.3–0.1Services520. index of consumer prices for Germany Enlarge picture
The harmonised index of consumer prices (HICP) for Germany, which is calculated for European purposes, rose by 1.7% in 2017 in an annual comparison with 2016. In December 2017, the HICP was up 1.6% on December 2016. The inflation rate was above the two-percent threshold, which is important for the monetary policy of the euro area, only in February 2017 (+2.2%). Compared with November 2017, the index rose markedly by 0.8% in December 2017. 

The provisional overall results of 29 December 2017 for the consumer price index (CPI) and the harmonised index of consumer prices (HICP) were thus confirmed.

More information on consumer price statistics is provided by Fachserie 17, Reihe 7.

Detailed data and long time series of consumer price statistics can also be found in the Genesis Online database in tables 61111-0004 and 61111-0006 (consumer price index) as well as in tables 61121-0002 and 61121-0004 (harmonised consumer price index).

For further information:tel: +49 (0) 611 / 75 47 77,contact form
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