Press release No.142 / 2009-04-09

Consumer prices in March 2009: +0.5% on March 2008

Lowest inflation rate in nearly ten years

WIESBADEN– As reported by the Federal Statistical Office (Destatis), the consumer price index for Germany rose 0.5% in March 2009 on March 2008. That was the lowest inflation rate since July 1999 when it was 0.5%, too. In January and February 2009, the year-on-year rates of price increase were 0.9% and 1.0%, respectively. Compared with February 2009, the index was down by 0.1%. The estimate for March 2009 was thus confirmed.

The low inflation rate is mainly due to the strong downward price trend for mineral oil products and some foods. What had a particularly strong effect on the year-on-year rate of price increase in March 2009 was the price development for mineral oil products from March 2008 (−22.3%; of which liquid fuel: −36.3% and motor fuels: −18.0%): Not considering mineral oil products, the inflation rate in March 2009 would have been markedly higher (+1.7%).

For other energy products, however, prices were up in the same period: For household energy sources such as gas (+17.9%), charges for central heating and remote heat (+14.7%) and electricity (+6.4%), prices on March 2008 rose above average.

Food prices in March 2009 were just slightly (0.2%) above previous year’s level; since August 2008 the year-on-year rates of price increase for food declined continuously. Prices were down on a year earlier especially for nearly all dairy products and sharp price falls were observed, among other things, for curd (−24.5%) and cream (−22.7%). Prices continued to decrease also for oils and fats (−4.3%; including butter: −18.7%) as well as for some breads and cereals (for example flour: −10.8%; pasta: −1.8%). Prices were up on a year earlier especially for vegetables (+5.8%; including leafy and stalky vegetables: +53.0%; lettuce and iceberg salad: +34.8%; cucumbers: +23.2%). Consumers had to pay more than a year earlier also for meat and meat products (+3.7%; including frying sausage: +6.2%; beef: +4.8%) and for confectionery (+2.6%; including honey: +18.1%; chocolate slabs: +3.0%).

The marked price decreases in education (− 5.0%) are mainly due to the introduction of a free pre-school year in some Länder.

Change in March 2009 on February 2009
The slight decrease of the overall price index in March 2009 compared with February 2009 (−0.1%) is characterised by opposite price trends: Consumers had to pay slightly more, among other things, for clothing and footwear (+1.6%). As regards energy prices, electricity prices were up again from the previous month (+0.7%), while gas prices were slightly down again (−0.7%). Consumer-friendly trends were again recorded for prices of liquid fuel (−7.5%) and motor fuels (−2.1%).

Food prices on average decreased slightly (−0.4%) in a month-on-month comparison. The price falls on the previous month for some vegetables were partly due to seasonal factors (among other things, lettuce or iceberg salad: −18.4%; cucumbers: −28.3%; zucchini or aubergines: −31.6%). There were noticeable further price decreases for oils and fats (−1.5%; including butter: −2.2%; olive oil: −1.3%) as well as for some dairy products (for example, UHT milk: −1.2% and cream: −0.7%).

The harmonised consumer price index (HICP) for Germany, which is calculated for European purposes, rose 0.4% in March 2009 on March 2008. Compared with the previous month, the index was down 0.2%. The HICP estimate of 27 March 2009 was thus confirmed.

Further information on consumer price statistics is provided by Fachserie 17, Reihe 7, which is available free of charge via the Publications. Detailed information and long time series on consumer price statistics can also be retrieved free of charge from the database Genesis Online.

>>> Brief methodological description

Background information on the low inflation rate
The inflation rates are calculated by comparing the current price levels with the price levels exactly one year ago. What has an effect on the inflation rates is not only the current price changes but also the price changes of the previous year. Therefore, when interpreting the current inflation rate, it must be taken into account that prices rose considerably from the middle of 2007 and the index peaked in July 2008. In the coming months, the inflation rate will be influenced by the sharp price rises of the previous year. If we assume rather stable prices for the next few months, the inflation rates calculated will continue to be low or, at times, even negative.

Consumer price index for Germany
Overall index ________ Year / Month		Index 2005 = 100	Change on the same period a year earlier	Change on the preceding month
Overall index ________ Year / Month		Index 2005 = 100	in per cent
Overall index in March 2009		106.8	0.5	–0.1
2007 Annual average		103.9	2.3	–
2008 Annual average		106.6	2.6	–
2007	July	104.2	2.1	0.6
	August	104.1	2.2	–0.1
	September	104.2	2.7	0.1
	October	104.5	2.8	0.3
	November	105.0	3.2	0.5
	December	105.6	3.1	0.6
2008	January	105.3	2.8	–0.3
	February	105.8	2.8	0.5
	March	106.3	3.1	0.5
	April	106.1	2.4	–0.2
	May	106.7	3.0	0.6
	June	107.0	3.3	0.3
	July	107.6	3.3	0.6
	August	107.3	3.1	–0.3
	September	107.2	2.9	–0.1
	October	107.0	2.4	–0.2
	November	106.5	1.4	–0.5
	December	106.8	1.1	0.3
2009	January	106.3	0.9	–0.5
	February	106.9	1.0	0.6
	March	106.8	0.5	–0.1

Consumer price index for Germany
Overall index / product groups ________ Overall index / subindex	Weighting	Index 2005 = 100	Change on the same period a year earlier	Change on the preceding month
	in per million	Index 2005 = 100	in per cent
Overall index in March 2009	1,000.00	106.8	0.5	–0.1
Food and non-alcoholic-beverages	103.55	112.3	0.0	–0.4
Food	89.99	112.8	0.2	–0.4
Milk, cheese and eggs	14.44	114.2	–8.0	–0.2
Oils and fats	2.55	112.4	–4.3	–1.5
Alcoholic beverages and tobacco	38.99	109.5	2.0	0.2
Clothing and footwear	48.88	103.8	1.5	1.6
Housing, water, electricity, gas and other fuels	308.00	109.3	1.8	–0.1
Net rent exclusive of heating expenses	203.30	104.4	1.2	0.1
Household energy	59.82	127.0	3.2	–0.7
Electricity	24.61	125.5	6.4	0.7
Gas	12.85	145.7	17.9	–0.7
Liquid fuel	9.21	88.8	–36.3	–7.5
Furnishings, household equipment and routine maintenance of the house	55.87	103.9	1.6	0.3
Health	40.27	103.6	1.3	0.1
Transport	131.90	106.4	–3.7	–0.3
Motor fuels	35.37	97.5	–18.0	–2.1
Supergrade petrol	19.29	97.7	–16.0	–1.3
Diesel oil	8.15	95.4	–23.9	–4.9
Communication	31.00	90.1	–2.8	–0.1
Recreation and culture	115.68	100.9	0.6	–0.8
Education	7.40	132.9	–5.0	–0.4
Restaurants and hotels	43.99	107.0	1.4	–1.1
Miscellaneous goods and services	74.47	106.9	1.2	0.1
Overall index
Excluding liquid fuel and motor fuels	955.42	107.3	1.7	0.0
Excluding household energy	940.18	105.5	0.3	–0.1
Excluding energy (household energy and motor fuels)	904.81	105.8	1.1	0.0
Goods, total	493.00	107.8	–0.2	–0.1
Non-durable consumer goods	305.11	112.1	–0.8	–0.5
Consumer goods with a medium-term life	95.24	103.4	1.5	0.8
Durable consumer goods	92.65	97.8	–0.2	0.1
Services	507.00	105.8	1.1	–0.2

For further information please call our service telephone number,
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E-mail: verbraucherpreisindex@destatis.de

For more details please refer to the German version.

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