Press release No.177 / 2009-05-12

CORRECTION at HICP: Consumer prices in April 2009: +0.7% on April 2008

Temporary increase in inflation rate due to calendar effect

WIESBADEN – As reported by the Federal Statistical Office (Destatis), the consumer price index for Germany rose 0.7% in April 2009 on April 2008. Compared with March 2009, the index remained unchanged. In March 2009, the inflation rate amounted to 0.5%. The estimate for April 2009 was thus confirmed.

The 0.7% inflation rate in April 2009 was the result of opposing trends. Due to the Easter holidays in April (in 2008, Easter was in March), a clear rise on the previous year was recorded in the prices of package holidays (+16.5%), air travels (+6.9%) and accommodation services (+4.0%), which led to a temporarily rising inflation rate in April 2009. Most notably, however, the enormous decline in the prices of mineral oil products (−19.5% on a year earlier) continued to have a downward impact on the inflation rate.

On the whole, energy prices fell 5.2% in April 2009 on April 2008: While the prices of mineral oil products were considerably down on a year earlier (liquid fuel: −35.6% and motor fuels: −14.5%), an increase was observed in the prices of household energy sources such as gas (+4.7%) and electricity (+6.9%) and charges for central and remote heating (+12.8%). Not considering energy products, the inflation rate in April 2009 would have been markedly higher (1.4%).

For the first time since March 2006, food prices were again below the previous year’s level in April 2009 (−0.6%). Considerable year-on-year price decreases were observed for some dairy products (for instance curd: −24.9%; cream: −23.3%; fresh full cream milk: −18.0%; and butter (−17.3%). In April 2009, the prices of fruit were considerably down on a year earlier, too (−5.8%; including grapes: −12.0%; bananas: −4.8%). Price increases were recorded especially for meat and meat products (+3.9%; including pork cutlet or escalope: +7.1%; frying sausage: +6.4%; minced meat: +5.5%) and for confectionary (+2.7%; including honey: +22.3%; chocolate slabs: +3.6%).

The year-on-year price trend for durable consumer goods (−0.2%) continued to be more favourable. Significantly lower prices were observed, for example, for information processing equipment (−13.1%; including notebooks: −19.0%) and consumer electronics (−11.0%; for example, TV sets: −25.4%). Noticeable price decreases were also recorded for communication (−2.7%; including mobile phones: −8.8%) and in education (−5.3%).

Change in April 2009 on March 2009
The price stability reflected by the overall index in April 2009 as compared to March 2009 was not observed for all goods. Energy products, for example, showed different price trends compared with the previous month. The prices of liquid fuel (+5.2%) and motor fuels (+4.4%) moved upwards again compared to the previous month, while gas prices showed a more favourable month-on-month trend from a consumer perspective (−10.0%).

Food prices were down by an average 0.4% from the previous month. Price falls were mainly observed for vegetables (−2.9%; including cucumbers: −38.6%; lettuce and iceberg salad: −18.8%), though they were partly due to seasonal factors. Particularly striking was the continuing decrease of prices for dairy products (among other things, cream: −0.8%; fresh cheese: −0.6%). As butter prices declined again in April (−1.3%) compared with March 2009, they have now fallen below the level that preceded the sharp price increase in the summer of 2007.

The harmonised consumer price index (HICP) for Germany, which is calculated for European purposes, rose by 0.8% in April 2009 on April 2008. Compared with the previous month, the index rose by 0.1%. The HICP estimate of 28 April 2009 was slightly corrected upwards.

Further information on consumer price statistics is provided by Fachserie 17, Reihe 7, which is available free of charge via the publications of the Federal Statistical Office. 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 / 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 April 2009	1,000.00	106.8	0.7	0.0
Food and non-alcoholic-beverages	103.55	111.9	–0.7	–0.4
Food	89.99	112.3	–0.6	–0.4
Milk, cheese and eggs	14.44	114.1	–8.4	–0.1
Oils and fats	2.55	111.1	–6.1	–1.2
Alcoholic beverages and tobacco	38.99	109.5	1.4	0.0
Clothing and footwear	48.88	104.0	1.6	0.2
Housing, water, electricity, gas and other fuels	308.00	108.9	1.0	–0.4
Net rent exclusive of heating expenses	203.30	104.5	1.2	0.1
Household energy	59.82	124.7	–0.1	–1.8
Electricity	24.61	126.4	6.9	0.7
Gas	12.85	131.1	4.7	–10.0
Liquid fuel	9.21	93.4	–35.6	5.2
Furnishings, household equipment and routine maintenance of the house	55.87	104.1	1.8	0.2
Health	40.27	104.1	1.4	0.5
Transport	131.90	107.5	–2.7	1.0
Motor fuels	35.37	101.8	–14.5	4.4
Supergrade petrol	19.29	102.0	–12.3	4.4
Diesel oil	8.15	99.7	–20.9	4.5
Communication	31.00	90.1	–2.7	0.0
Recreation and culture	115.68	101.1	4.3	0.2
Education	7.40	132.9	–5.3	0.0
Restaurants and hotels	43.99	106.9	2.9	–0.1
Miscellaneous goods and services	74.47	107.1	1.3	0.2
Overall index
Excluding liquid fuel and motor fuels	955.42	107.1	1.8	–0.2
Excluding household energy	940.18	105.7	0.8	0.2
Excluding energy (household energy and motor fuels)	904.81	105.8	1.4	0.0
Goods, total	493.00	107.8	–0.6	0.0
Non-durable consumer goods	305.11	112.1	–1.2	0.0
Consumer goods with a medium-term life	95.24	103.7	1.8	0.3
Durable consumer goods	92.65	97.8	–0.2	0.0
Services	507.00	105.9	2.0	0.1

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 April 2009		106.8	0.7	0.0
2007 annual average		103.9	2.3	–
2008 annual average		106.6	2.6	–
2008	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
	April	106.8	0.7	0.0

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