Press release No.295 / 2009-08-11

Consumer prices in July 2009: –0.5% on July 2008

Price trend unchanged on June 2009

WIESBADEN – As reported by the Federal Statistical Office (Destatis), the consumer price index for Germany declined 0.5% in July 2009 on July 2008. Regarding the Federal Republic of Germany as a whole, such a low inflation rate has never been calculated since German reunification, while for the former territory of the Federal Republic, a rate like that was last calculated in spring 1987. In the preceding months of June and May 2009, the rates of price increase were +0.1% and ± 0.0%, respectively. Compared to June 2009, the consumer price index remained unchanged (±0.0%). Hence the estimate for July 2009 was slightly revised upwards.

The negative inflation rate is still significantly attributable to particularly large price fluctuations for liquid fuel and motor fuels (mineral oil products). Due to the fact that mineral oil prices declined again on June 2009, the current prices are far below the record level observed in the previous year. In addition, the decline in food prices which has been observed for a couple of months is another fundamental reason for the low rate of price increase. The trends observed in the prices of energy and food are stronger than the price trends recorded for all other goods and services, although the share of the former in the weighting scheme is not more than nearly 20 percent. Not considering the trends in the prices of the above two types of non-durable consumer goods, the inflation rate would have been 1.4% in July 2009.

On the whole, the prices of energy (household energy and motor fuels) fell 11.5% in July 2009 on July 2008. Considerable price decreases were observed mainly for mineral oil products (−26.3%; of which liquid fuel: −44.7%; motor fuels: −20.0%). As a result of repeated gas price reductions, gas, too, became cheaper in 2009 compared to a year earlier (−3.3%). Hence gas prices followed the declining trend in crude oil prices, though with a time delay. An opposite trend was however determined for electricity prices (+6.6%).

Food prices fell 2.4% on July 2008, after a short-term year-on-year increase was recorded in June. Considerable year-on-year price decreases were again observed especially for dairy products and for oils and fats (−9.7% each; including curd: −25.6%; fresh full cream milk: −21.0%; butter: −18.9%). In July 2009, marked year-on-year price decreases were also recorded for vegetables (−9.2%; including pepper: −21.6%; tomatoes: −19.6%; potatoes: −16.5%) and for some types of fruit (including apples: −10.5%). However, prices were up on July 2008 for fish (+3.5%) and for meat (+2.5%). What is striking among confectionery (+1.8%) is the increase in honey prices (+20.4%on July 2008), which has been observed for several months.

Considerable price decreases were observed, among other things, for education (−5.3%) and also for information processing equipment (−9.1%) and consumer electronics (−10.1%). Moderate or stable year-on-year price trends were recorded for a large number of goods. A typical example is rents exclusive of incidental rental expenses (+1.1%). However, price rises worth mentioning were observed for tobacco (+4.7%; including cigarettes: +5.1%) and for package holidays (+4.5%).

Change in July 2009 on June 2009
On the whole, prices were stable in July 2009 compared to June 2009. The consumer price index was unchanged at 107.1 compared to a month earlier.

As is typical during this season, however, consumers had to pay much more for their vacations at the beginning of the summer holidays (including package holidays: +14.5%; air travels: +10.5%; accommodation services: +9.5%). Motor fuel prices showed a consumer-friendly trend in the holiday month of July 2009 (−4.0%; including supergrade petrol: −4.5%; Diesel fuel: −2.3%).

A month-on-month decline of 1.9% was observed in the prices of household energy (including liquid fuel: −5.7% and gas: −3.8%). Food prices, too, were down in the same period (−1.2%). Typical was the seasonal decline in the prices of several vegetables (including tomatoes: −13.9%; lettuce: −9.8%; cucumbers: −7.4%). Some types of fruit were much cheaper, too (in particular grapes: −20.7%).

Price reductions given to customers especially in the summer sales led to an average decline in the prices of clothing and footwear (−3.3%; including clothing: −3.7% and footwear: −1.9%).

The harmonised consumer price index (HICP) for Germany, which is calculated for European purposes, declined 0.7% in July 2009 on July 2008. Hence a negative rate of price increase was observed for the first time since the beginning of the HICP compilation for Germany. Compared with June 2009, the index was down 0.1%. The HICP estimate of 29 July 2009 was thus slightly revised downwards.

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.

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 June 2009	1,000.00	107.1	–0.5	0.0
Food and non-alcoholic-beverages	103.55	110.5	–2.1	–1.1
Food	89.99	110.7	–2.4	–1.2
Milk, cheese and eggs	14.44	110.6	–8.1	–0.3
Oils and fats	2.55	109.9	–9.7	–0.4
Alcoholic beverages and tobacco	38.99	112.3	3.2	–0.1
tobacco	22.43	115.8	4.7	0.0
Clothing and footwear	48.88	98.5	1.1	–3.3
Housing, water, electricity, gas and other fuels	308.00	108.7	–0.5	–0.4
Net rent exclusive of heating expenses	203.30	104.7	1.1	0.1
Household energy	59.82	122.9	–6.5	–1.9
Electricity	24.61	126.6	6.6	0.0
Gas	12.85	124.9	–3.3	–3.8
Liquid fuel	9.21	96.2	–44.7	–5.7
Furnishings, household equipment and routine maintenance of the house	55.87	104.5	2.2	0.0
Health	40.27	104.3	0.9	0.1
Transport	131.90	108.6	–4.9	–0.7
Motor fuels	35.37	104.3	–20.0	–4.0
Supergrade petrol	19.29	105.1	–16.9	–4.5
Diesel oil	8.15	100.2	–28.9	–2.3
Communication	31.00	89.7	–2.1	–0.1
Recreation and culture	115.68	103.3	1.9	3.3
Package holidays	25.93	118.8	4.5	14.5
Education	7.40	133.1	–5.3	0.0
Restaurants and hotels	43.99	111.5	2.2	2.7
Miscellaneous goods and services	74.47	107.5	1.4	0,2
Overall index
Excluding liquid fuel and motor fuels	955.42	107.3	1.1	0.2
Excluding household energy	940.18	106.1	0.0	0.1
Excluding energy (household energy and motor fuels)	904.81	106.2	1.0	0.4
Goods, total	493.00	107.1	–2.3	–1.1
Non-durable consumer goods	305.11	111.9	–3.9	–1.2
Consumer goods with a medium-term life	95.24	100.7	1.4	–1.8
Durable consumer goods	92.65	97.7	0.0	0.0
Services	507.00	107.1	1.3	1.0

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 June 2009		107.1	–0.5	0.0
2007 annual average		103.9	2.3	–
2008 annual average		106.6	2.6	–
2008	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
	June	107.1	0.1	0.4
	July	107.1	–0.5	0.0

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