Press release No.406 / 2010-11-09

Consumer prices in October 2010: +1.3% on October 2009

Inflation rate remains unchanged

WIESBADEN – As reported by the Federal Statistical Office (Destatis), the consumer price index for Germany rose 1.3% in October 2010 on October 2009. In September 2010, the inflation rate, measured by the consumer price index, also stood at +1.3%. Hence, in October 2010, the rate continued to be below the threshold of two percent, which is important for monetary policy. Compared with September 2010, the consumer price index remained nearly unchanged (+0.1%). The estimate for October 2010 was confirmed.

In October 2010, the inflation rate was largely determined by the trends observed for energy prices: On the whole, the prices of energy products were up 5.1% on October 2009. A considerable year-on-year increase in prices was especially observed for mineral oil products (+10.2%; of which heating oil: +17.3% and motor fuels: +8.4%). Electricity prices and gas prices were up 3.3% and 0.8%, respectively, on a year earlier. However, the charges to be paid for central and remote heating showed an opposing trend (−3.2%). Not considering the development of energy prices, the inflation rate would have been no more than +0.9% in October 2010.

Food prices (+2.9%) were clearly above the level of a year earlier in October 2010. Very high price increases were observed for vegetables (+10.2%) and fruit (+8.2%). In October 2010, there was also a notable rise in the prices of oils and fats (+9.9%), which was again due to the price development for butter (+25.3% on October 2009). The prices of dairy products and eggs rose by 3.3%, those of fish and fish products by 2.9% in October 2010. Compared with the same month a year earlier, only few groups of food products showed lower prices (for example confectionery: −1.2%).

The prices of goods increased by an above-average 1.9% compared with October 2009. The strongest increase was observed in the prices of non-durable consumer goods (+2.9%), while the prices of consumer goods with a medium-term life were only slightly above the level seen in 2009 (+0.4%; including clothing and footwear: +0.3%). The price trends for durable consumer goods remained favourable for consumers (−0.4%). Particularly consumer-friendly price trends were recorded, for example, for TV sets (−18.2%) and notebooks (−9.2%).
The prices of services increased by an average of 0.8% in the same period. Opposing price trends were however reported for this product group. For example, net rents exclusive of heating expenses, which have a 20% weight in the consumer price index, rose by 1.1%, whereas the prices for communication services decreased by 2.3%.

Change in October 2010 on September 2010

On the whole, prices remained almost unchanged in October 2010 (+0.1%) compared with September 2010. Different price trends were observed for individual product groups: Regarding energy products, gas prices increased markedly (+1.0%) in October 2010 compared with the previous month, while the prices of mineral oil products climbed only slightly in the same period (+0.2%; of which heating oil: +0.1%; motor fuels: +0.2%). Food prices showed a moderate decline of 0.3% in October 2010. Lower prices were observed especially for vegetables (−2.4%) and fruit (−0.8%).

Notable price movements were also recorded for other product groups, such as non-alcoholic beverages (+1.2%). Regarding that product group, consumers had to pay considerably more for coffee within a period of one month (+3.8% on September 2010).

The harmonised index of consumer prices (HICP) for Germany, which is calculated for European purposes, rose 1.3% in October 2010 on October 2009. Compared with September 2010, the index was up 0.1%. The HICP estimate of 27 October 2010 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 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.

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 October 2010	1,000.00	108.4	1.3	0.1
Food and non-alcoholic-beverages	103.55	111.9	2.7	–0.1
Food	89.99	112.2	2.9	–0.3
Milk, cheese and eggs	14.44	113.1	3.3	0.3
Fruit	9.23	113.6	8.2	–0.8
Vegetables	10.60	113.2	10.2	–2.4
Alcoholic beverages and tobacco	38.99	113.1	0.3	0.0
Clothing and footwear	48.88	105.8	0.3	0.9
Housing, water, electricity, gas and other fuels	308.00	110.5	1.7	0.1
Net rent exclusive of heating expenses	203.30	106.1	1.1	0.1
Household energy	59.82	125.9	3.3	0.4
Electricity	24.61	131.0	3.3	0.1
Gas	12.85	119.9	0.8	1.0
Heating oil	9.21	124.3	17.3	0.1
Furnishings, household equipment and routine maintenance of the house	55.87	104.7	0.1	0.0
Health	40.27	105.2	1.0	0.1
Transport	131.90	112.1	2.7	0.2
Motor fuels	35.37	115.6	8.4	0.2
Supergrade petrol	19.29	114.7	7.6	–0.1
Diesel oil	8.15	116.4	10.9	1.0
Communication	31.00	87.4	–2.3	–0.3
Recreation and culture	115.68	101.2	0.3	0.0
Package holidays	25.93	106.2	–0.2	–0.9
Education	7.40	132.6	1.2	0.1
Restaurants and hotels	43.99	109.1	1.2	–0.1
Miscellaneous goods and services	74.47	108.9	0.5	0.0
Overall index
Excluding heating oil and motor fuels	955.42	108.0	0.9	0.1
Excluding household energy	940.18	107.3	1.1	0.1
Excluding energy (household energy and motor fuels)	904.81	107.0	0.9	0.1
Goods, total	493.00	109.7	1.9	0.3
Non-durable consumer goods	305.11	114.9	2.9	0.2
Consumer goods with a medium-term life	95.24	104.9	0.4	0.7
Durable consumer goods	92.65	97.4	–0.4	–0.1
Services	507.00	107.2	0.8	0.0

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
2008 Annual average		106.6	2.6	–
2009 Annual average		107.0	0.4	–
2009	October	107.0	0.0	0.1
	November	106.9	0.4	–0.1
	December	107.8	0.9	0.8
2010	January	107.1	0.8	–0.6
	February	107.5	0.6	0.4
	March	108.0	1.1	0.5
	April	107.9	1.0	–0.1
	May	108.0	1.2	0.1
	June	108.1	0.9	0.1
	July	108.4	1.2	0.3
	August	108.4	1.0	0.0
	September	108.3	1.3	–0.1
	October	108.4	1.3	0.1

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