German CPI accelerates slightly in July even as energy prices continue to drop

The cost of living in Germany registered a slight acceleration in July, even as energy price declines continued to bear down on prices.

Germany´s consumer price index increased by 0.3% month-on-month and 0.4% year-on-year, according to the Federal Office of Statistics.

In harmonised terms, CPI was up by 0.4% in both monthly and annual terms.

Both sets of data were in-line with economists´ forecasts.

Versus July 2015, energy prices had a marked downward effect, government statisticians said, with energy price declines accelarating to -7.0% from -6.4% one year ago.

In terms of monthly rates of change, package holiday prices jumped 16.1% and air tickets by 6.2%, while energy prices fell by 1.2%.

Declines were also seen in prices for clothing and footwear and accesories, which fell by 3.6% and 4.0%, respectively, with the decrease in the latter mainly the result of seasonal price reductions for some summer articles.