Press release No.217 / 2009-06-10

Consumer prices in May 2009: 0.0% on May 2008

High price level of previous year has downward effect on inflation

WIESBADEN – As reported by the Federal Statistical Office (Destatis), the consumer price index for Germany in May 2009 was at the same level as in May 2008. The inflation rate (0.0%) thus reached its lowest level in 22 years (last time in May 1987± 0.0%). In April 2009, it was 0.7%. Compared with April 2009, the index was down by 0.1%. The estimate for May 2009 was thus confirmed.

The low inflation rate in May 2009 is mainly due to the high price level a year earlier. Compared with that level, especially the prices of energy products, but also those of many foods, were down. Thus in part marked negative year-on-year rates of change were observed for those goods. Those sharp price falls are currently characterising the trend of the inflation rate. Not considering energy products and food, which account for about 20 percent of the expenditure of households, the inflation rate in May 2009 would have been 1.4%.

On the whole, energy prices fell 8.0% in May 2009 on May 2008: Considerable year-on-year price decreases were again observed for liquid fuel (−42.4%) and motor fuels (−16.9%; including Diesel fuel: −26.5%). However, prices of household energy such as gas (+3.6%), electricity (+6.9%) and charges for central and remote heating (+10.5%) were up on a year earlier.

Food prices were below the previous year’s level in May 2009 (−1.2%) and already since August 2008 the rates of price increase for food decreased continuously. Considerable year-on-year price decreases were observed especially for dairy products by −8.0% (including curd: −24.4%; cream: −18.9%; fresh full cream milk: −14.8%) as well as for oils and fats by−5.5% (including butter: −14.0%; olive oil: −5.2%). Marked year-on-year price decreases were also recorded for vegetables with−6.0% (including lettuce and iceberg salad: −40.1%; pepper: −34.9%; cucumbers: −22.0%). Prices were up on May 2008 for meat and meat products by +3.3% (including pork cutlet or escalope: +5.6%; frying sausage: +5.5%) as well as for confectionery by +2.3% (including honey: +21.3%; chocolate slabs: +3.9%).

In a year-on-year comparison, prices were again down for consumer durables by −0.2% (including information processing equipment: −11.4% and consumer electronics: −11.2%).

Prices of services were 1.3% higher than a year earlier. A major item here is rents exclusive of incidental rental expenses (+1.1%), which have a share of a good 20% in household expenditure. Price decreases were observed, however, for education (−5.4%) and communications (−2.5%; including mobile phone: −7.8%).

Change in May 2009 on April 2009
The slight decrease of the overall price index in May 2009 compared with April 2009 (−0.1%) is characterised by opposite price trends: Compared with the previous months, prices were down especially for package holidays (−3.4%) as well as for clothing and footwear (−0.9%). A slightly consumer-friendly trend was shown also by gas prices (−0.5% on a month earlier). However, in the same period, prices were up for liquid fuel (+0.3%) and motor fuels (+2.1%).

Food prices in May 2009 decreased (−0.5%) in a month-on-month comparison. The price falls especially for vegetables were partly due to seasonal factors by 2.8% (including cucumbers: −18.7%; lettuce or iceberg salad: −23.2%). There were noticeable further price decreases for some dairy products (among other things curd: −8.9%; fresh full-cream milk: −6.1%; UHT milk: −5.6%; cream: −4.6%). Butter prices, too, were down another 0.7%.

The harmonised consumer price index (HICP) for Germany, which is calculated for European purposes, remained unchanged in May 2009 compared with May 2008 (± 0.0%). Compared with the previous month, the index was down 0.1%. The HICP estimate of 27 May 2009 was thus 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. 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

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 mill	Index 2005 = 100	in per cent
Overall index in May 2009	1,000.00	106.7	0.0	–0.1
Food and non-alcoholic- beverages	103.55	111.3	–1.2	–0.5
Food	89.99	111.7	–1.2	–0.5
Milk, cheese and eggs	14.44	111.7	–6.6	–2.1
Oils and fats	2.55	110.4	–5.5	–0.6
Alcoholic beverages and tobacco	38.99	109.5	1.2	0.0
Clothing and footwear	48.88	103.1	1.7	–0.9
Housing, water, electricity, gas and other fuels	308.00	108.9	0.4	0.0
Net rent exclusive of heating expenses	203.30	104.5	1.1	0.0
Household energy	59.82	124.4	–2.8	–0.2
Electricity	24.61	126.5	6.9	0.1
Gas	12.85	130.4	3.6	–0.5
Liquid fuel	9.21	93.7	–42.4	0.3
Furnishings, household equipment and routine maintenance of the house	55.87	104.1	1.9	0.0
Health	40.27	104.2	1.4	0.1
Transport	131.90	108.1	–3.7	0.6
Motor fuels	35.37	103.9	–16.9	2.1
Supergrade petrol	19.29	104.7	–13.8	2.6
Diesel oil	8.15	99.4	–26.5	–0.3
Communication	31.00	89.9	–2.5	–0.2
Recreation and culture	115.68	100.2	1.9	–0.9
Education	7.40	132.9	–5.4	0.0
Restaurants and hotels	43.99	107.8	2.7	0.8
Miscellaneous goods and services	74.47	107.3	1.3	0.2
Overall index
Excluding liquid fuel and motor fuels	955.42	107.0	1.4	–0.1
Excluding household energy	940.18	105.6	0.2	–0.1
Excluding energy (household energy and motor fuels)	904.81	105.7	1.1	–0.1
Goods, total	493.00	107.7	–1.3	–0.1
Non-durable consumer goods	305.11	112.1	–2.4	0.0
Consumer goods with a medium-term life	95.24	103.2	1.8	–0.5
Durable consumer goods	92.65	97.7	–0.2	–0.1
Services	507.00	105.8	1.3	–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 May 2009		106.7	0.0	–0.1
2007 annual average		103.9	2.3	–
2008 annual average		106.6	2.6	–
2008	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
	May	106.7	0.0	–0.1

For further information please call our service telephone number,
tel: (+49-611) 75-4777,

E-mail: verbraucherpreisindex@destatis.de

For more details please refer to the German version.

Contact:
tel: (+49-611)75-3444
fax: (+49-611)75-3976
presse@destatis.de
www.destatis.de

Service hours:
Mon - Tue: 8am - 5pm
Fri: 8am - 3pm
CET / CEST

Postal address:
65180 Wiesbaden
Germany

Inhalt maximieren (Accesskey 3)