A few minutes ago the detailed data for German consumer prices for the month of August were published. As announced two weeks ago, the rate is +1.4% (1.7% in July) and the rate calculated for ECB purposes is 1.0%. Very weak!
Consumer prices for energy plummeted from July to August. While in July they rose by 2.4% year-on-year, in August they were only +0.6%. This means that the overall average is pulled down sharply! Without taking energy prices into account, the inflation rate in August would have been +1.6%, without taking petroleum products into account even +1.7%.
Food, on the other hand, has a clearly positive effect on the overall average consumer price. The statisticians in the wording:
In August 2019, food prices rose by +2.7% year-on-year to an above-average level. This is the fifth consecutive month that food prices have risen more than in August 2018 (July 2019: +2.1%). Vegetables were considerably more expensive in August 2019 than a year earlier (+12.8%). There were further significant price increases for meat and meat products (+4.3%) and fish, fish products and seafood (+4.0%). The price increases were offset by a few price declines (e.g. edible oils and fats: -8.9 %; fruit: -2.6 %).
The prices for services are also above the average of +1.6%. See there, oh wonder dear ECB, bank charges are also rising sharply. But there are also other sectors with double-digit growth rates. The statisticians in the wording:
Compared to goods, prices for services rose slightly more sharply in August 2019 (+1.6%) within a year. The price increase for net rents (+1.4 %) was significant for the price development of services, as private households spend a large part of their consumer spending on them. For example, social services (+5.7 %), maintenance and repair of vehicles (+4.8 %) and restaurant services in restaurants, cafés and street vendors (+2.7 %) became much more expensive. In addition, a large number of services with comparatively low consumption significance also increased significantly (e.g. long-distance buses: +18.5 %; letter services: +10.6 %; bank and savings bank charges: +4.1 %). Some services were also cheaper, including telecommunications (-0.7%).