Q4-2014: Asset price inflation significantly higher than consumer price inflation

Last year, the prices for the assets of German households as calculated using the FvS Wealth Price Index rose by 4.4% (fourth quarter versus previous year's quarter). In the same period, consumer prices rose by only 0.5% and producer prices fell by 1.2%.

The driving force behind the rise in asset prices was a 5.5% increase in real estate prices. Prices for the equally important bonds and business wealth rose by 6.0% and 3.8%, respectively. Among the asset classes, other financial assets, which are less significant, achieved the highest growth at 9.2%.

At 4.4%, asset prices rose slightly above average for the richest households (in the top tenth of the wealth distribution). By contrast, asset prices for the second to last group of the poorest households rose comparatively little, by 2.25%.

This study is co-authored by Christopher Thiem.

Please note: This study is available in German only.