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- Germany's consumer price index rose in line with forecasts in April
Germany's consumer price index rose in line with forecasts in April
The Federal Statistical Office (Destatis) said that the inflation rate in Germany, measured as the year-on-year change in the consumer price index, stood at +2.0% in April 2021. The inflation rate increased for the fourth month in a row after the temporary reduction of the value added tax rates had ended. That level was last recorded in April 2019. Destatis also reports that consumer prices were up 0.7% compared with March 2021.
The prices of goods (total) increased by 2.6% between April 2020 and April 2021. Energy product prices were 7.9% higher than a year earlier, after +4.8% in March 2021. In addition to the CO2 charge introduced at the beginning of the year, the decrease in energy product prices of a year earlier had an impact on the inflation rates (base effect). Compared with a year ago, higher prices were recorded especially for motor fuels (+23.3%) and heating oil (+21.1%), while electricity prices declined slightly (-0.2%). Food prices rose by 1.9%. Higher prices than a year earlier were recorded, for example, for confectionery (+3.1%) and also dairy products and butter (+2.5%). Marked price rises were observed for plants and flowers (+7.5%), coffee products (+5.1%) and tobacco products (+4,5%). However, notable price decreases were recorded for mobile phones (-8.3%).
The year-on-year increases in energy product prices had a clear upward effect on the inflation rate. Excluding energy prices, the inflation rate would have been +1.4% in April 2021; excluding the prices of heating oil and motor fuels, it would have been only +1.2%.
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