Consumer prices increasing less rapidly

According to first estimates by the Federal Statistical Office, consumer prices increased by 3.1% in August 2008 as compared to August last year. Thus, inflation is slowing down a little bit (in July: +3.3%). In comparison to July this year consumer prices have probably fallen by 0.3%. This decrease is due to lower prices for energy carriers. The price for heating oil, for instance, fell by between -8.6% and -11.6% in several Federal laenders and by between -4.9% and -6.4% for fuel.

Without taking into account heating oil and fuels the annual inflation rate amounted to between +2.2% and +2.7% in several laenders. Food prices also fell in August as compared to July this year (by between -0.3 and -0.7%). This decrease is due to seasonal factors (fruits and vegetables). However, in comparison with August 2007 annual inflation in August this year is still higher for foodstuffs (between +6.2 and +8.5%). Prices fell for package holidays (-0.4% on the previous month) and holiday flats (-1.6%). As compared to August last year, however, prices for these two product groups also increased (+2.3% and +1.5% respectively).

The harmonized European consumer price index for Germany will presumably increase by 3.3% in August this year as compared to August 2007 and fall by 0.4% in comparison with July this year. GERMAN