Also, we examined how the new consumer price basket, which is also to be
introduced in early 2019, will affect inflation .According to data from the Federal
Statistical Office, the share of expenditure German households spent on rents
and housing has been on the rise since 2010. In the consumer price statistics,
larger weights are therefore likely to be assigned to these categories. But as
long as rental inflation and headline inflation are nearly synchronised, the effect
of the new weights will be insignificant.
They will affect inflation, only when in the
years ahead rents for re-let homes continue to diverge further from those for
existing tenants and rental inflation exceeds inflation ex rents.