Expensive foodstuffs fuel inflation in germany

Expensive foodstuffs fuel inflation in germany

From may to june 2013, consumer prices rose by 0.1 percent. The federal statistical office in wiesbaden thus confirmed on wednesday its first estimate from the end of june.

In may, inflation picked up again for the first time after months of decline: to 1.5 percent. In april, the annual inflation rate was still 1.2 percent. June’s figure is the highest since december 2012 when a rate of 2.0 was recorded. The european central bank (ECB) believes that price stability has been maintained at rates of just under 2.0 percent.

Significant price increases for foodstuffs were primarily responsible for the most recent rise. Food prices rose by a total of 5.4 percent compared with the same month a year ago. Consumers had to dig much deeper into their pockets for potatoes (up 35.2 percent), butter (up 27.1 percent) and apples (up 21.1 percent).

Another price driver was once again energy costs, which were 3.0 percent higher overall than in june 2012. Electricity in particular (up 12.0 percent) was considerably more expensive – a consequence of the increase in the eco-electricity levy at the beginning of the year. Heizol (down 2.4 percent) and fuels (down 0.8 percent) were somewhat more favorable than a year ago.

If food and energy prices are excluded, the inflation rate in june was 1.3 percent. Economists explain the fact that food prices in germany rose markedly for the fourth month in a row with, among other things, crop failures and transport bottlenecks as a result of the floods.

Leave a Reply

Your email address will not be published.