CdM: Germany’s inflation rose by one tenth of a percentage point in July to 2.3%, Destatis, the Federal Statistical Office, has confirmed, blaming the rise on higher services prices.
“The fall in energy prices is holding down inflation,” but “on the other hand, we continue to see above-average price increases in services,” said the agency’s president, Ruth Brand.
Specifically, prices for services were 3.9% higher than in the same month of the previous year and thus “significantly higher than headline inflation”.
They rose mainly in insurance (13.9%), services of social institutions (8.1%) and restaurant services (6.7%). Vehicle maintenance and repair (5.9%), water supply and other residential services (4.7%) and sports, leisure and recreational services (4.6%) also rose significantly.
Meanwhile, energy products fell by 1.7%. In particular, domestic energy prices fell by 3.6% and fuel prices by 0.4%. Also electricity (-6.2%) and natural gas (-3.3%). However, some energy products were more expensive than the previous year, such as district heating (31%) and light diesel (7.7%).
In addition, food prices increased by 1.3 per cent. Edible fats and oils (14.3%) as well as sugar, jams, honey and other confectionery (6.1%) remained significantly more expensive. Consumers also had to pay more for other food groups such as vegetables (1.7%) or bread and cereal products (0.9%). Dairy products became 1.1% cheaper.
Excluding food and energy, core inflation remained unchanged at 2.9% in July in the seventh month of the year.
