MIL-OSI Translation: Inflation rate in January 2021 at +1.0%

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MIL OSI Translation. Region: Germany / Deutschland –

Source: Destatis Federal Statistical Office

Above all, energy products and food are more expensive than in the previous month

Press release 057 from February 10, 2021

Consumer price index, January 2021 + 1.0% on the same month of the previous year (preliminary result confirmed) + 0.8% on the previous month (preliminary result confirmed)

Harmonized index of consumer prices, January 2021 + 1.6% on the same month last year (provisional result confirmed) +1.4% on the previous month (provisional result confirmed)

WIESBADEN – The inflation rate in Germany – measured as the change in the consumer price index (CPI) compared to the same month of the previous year – was +1.0% in January 2021, after -0.3% in December 2020. The inflation rate was most recently positive in June 2020 (+ 0.9%). As the Federal Statistical Office (Destatis) also reports, consumer prices rose by 0.8% compared to December 2020.

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The end of the temporary lowering of VAT rates will drive prices up

The temporary reduction in VAT rates as a measure of the federal government’s economic stimulus package ended on December 31, 2020. The reduced tax rate only continues to apply to restaurant and catering services. The passing on of the higher tax rates that have been in effect again since January 2021 accounts for part of the rise in consumer prices. As with the reduction in VAT rates in the summer, when returning to normal tax rates, it must be borne in mind that the actual effects do not have to correspond to the purely arithmetical effects. The Press release No. 215 “Effects of the VAT cut on consumer prices” from June 15, 2020.

Food is more expensive, but energy is still cheaper than a year ago

The prices for goods as a whole were 0.6% higher in January 2021 than in the same month of the previous year. Food prices increased by 2.2%. The Price surge has thus increased significantly (December 2020: + 0.5%). Meat and meat products (+ 3.5%) as well as fruit (+ 3.2%) and vegetables (+ 3.1%) were more expensive. In contrast, prices for energy products were 2.3% below the level of the same month last year. Within a year, light heating oil (-13.0%) and fuels (-2.9%) became cheaper. In contrast, natural gas (+2.0%) and electricity (+1.2%) were more expensive than a year before, despite the decline in the EEG surcharge. The fall in prices for Energy products however, has weakened significantly overall (December 2020: -6.0%). In addition to the end of the VAT rate cut, the one introduced at the beginning of the year had an impact CO2 tax on prices.

Inflation rate excluding energy at +1.4%

Without taking energy prices into account, the inflation rate would have been +1.4% in January 2021.

Services rose in price by 1.4% within a year

The prices for services as a whole were in January 2021 1.4% above the level of the same month last year. Net rents, which are significant due to the large share in consumer spending by private households, rose by 1.3%. Particularly noteworthy are rising prices for services provided by social institutions (+6.0%) and for maintenance and repairs in vehicle workshops (+3.4%). By contrast, train tickets were cheaper for consumers year-on-year (-8.1%).

Energy prices up 5.4% month on month

Compared to December 2020, the consumer price index increased by 0.8% in January 2021. The prices of energy products rose by 5.4%. The price increases for fuels (+ 10.7%) and heating oil (+ 13.9%) were particularly pronounced. In addition to the withdrawal of the VAT rate cut, the CO2 tax driving up prices. In addition, prices for food and non-alcoholic beverages rose by 2.6%, with vegetables (+ 7.8%) and coffee (+ 3.8%) becoming more expensive. The prices for individual services also rose significantly in some cases, for example lawyer and notary fees (+11.7%) as a result of the amended Remuneration Act and administration fees (+7.7%) due to the increase in the price of the Identity card.

Methodological notes:

In January 2021, the current corona crisis again led to difficulties in collecting prices because some goods were not available on the market. You can find information on the effects of the lockdown on price collection in our Method paper. The quality of the preliminary overall results is still guaranteed.

The results of the consumer price index are, in addition to other indicators for classifying the economic consequences of the corona pandemic, also on the special page “Corona statistics“Available on the website of the Federal Statistical Office.

The corona pandemic with its restrictions on public life and the resulting consequences also makes it necessary to change the usual procedure for the annual update of the goods weights of the Harmonized Index of Consumer Prices (HICP). There is a corresponding one on the website of the Federal Statistical Office Method paper available. The update of the product weights in the HICP explains a significant part of the discrepancy between the CPI and the HICP for Germany.

Crisis monitor enables comparison between corona crisis and financial and economic crisis

The consumer price index is also part of the “Crisis monitor“(Www.destatis.de/krisenmonitor), with which the Federal Statistical Office compares the development of important economic indicators in the Corona crisis and in the financial and economic crisis of 2008/2009. The crisis monitor supplements the special page “Corona statistics“(Www.destatis.de/corona), which bundles statistical information on the economic and social consequences of the corona pandemic.

Consumer price index for Germany January 2021
Overall index / sub-index
weighting
Index2015 = 100
Change compared to the month of the previous year
Change from previous month
in ‰
in %
The results are verified without allocations. () Limited informational value. since the numerical value is statistically relatively uncertain due to increased imputation rates (over 50%).
Overall index
1,000.00
106.3
1.0
0.8
Food and non-alcoholic beverages
96.85
111.3
1.9
2.6
food
84.87
112.1
2.2
2.6
Meat and meat products
18.60
115.5
3.5
1.7
fruit
8.88
114.9
3.2
1.7
vegetables
11.08
114.5
3.1
7.8
Alcoholic beverages and tobacco products
37.77
114.3
2.1
0.8
Clothing and shoes
45.34
(101.0)
(1.1)
(1.1)
Housing, water, electricity, gas and other fuels
324.70
106.7
0.7
0.9
Net rent
196.32
107.8
1.3
0.2
Electricity, gas and other fuels (household energy)
68.82
101.7
-1.9
2.9
electricity
25.92
110.9
1.2
1.6
natural gas 1
13.53
98.9
2.0
4.2
Light heating oil 1
7.01
98.2
-13.0
13.9
Furniture, lights, appliances and other household accessories
50.04
(104.5)
(1.2)
(2.0)
health
46.13
105.3
0.0
1.0
traffic
129.05
107.7
0.5
3.6
Fuels
35.01
102.1
-2.9
10.7
Premium gasoline
25.66
100.5
-2.0
10.2
Diesel fuel
8.64
106.6
-5.5
12.1
Post and Telecommunications
26.72
94.5
-1.5
2.2
Leisure, entertainment and culture
113.36
(98.4)
(1.7)
(-5.7)
Package tours
26.62
(70.0)
(-3.3)
(-28.5)
Education
9.02
103.6
1.6
0.8
Catering and accommodation services
46.77
(112.5)
(1.8)
(0.3)
Other goods and services
74.25
109.5
2.4
1.1
Overall index
without food and energy
811.30
106.3
1.4
0.0
without energy (household energy and fuels)
896.17
106.8
1.4
0.2
without heating oil and fuels
957.98
106.5
1.3
0.3
Were
468.16
105.9
0.6
2.5
Consumer goods
297.54
107.6
0.4
3.1
energy
103.83
101.8
-2.3
5.4
Services
531.84
106.6
1.4
-0.8

Further information on consumer price statistics can be found in the series 17. Series 7 “Consumer price indices for Germany”And the monthly online report“ Harmonized Indices of Consumer Prices ”. Detailed data on consumer price statistics can be found in the tables Consumer price index (61111-0004) and (61111-0006) such as Harmonized index of consumer prices (61121-0002) and (61121-0004) can be called up in the GENESIS-Online database.

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EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.

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