Consumer prices: the Eurozone's negative Inflation

While the inflation rate for the Eurozone in may was very slightly Positive, at 0.1 percent, it is in many of the member countries of the monetary Union negativ

Consumer prices: the Eurozone's negative Inflation

While the inflation rate for the Eurozone in may was very slightly Positive, at 0.1 percent, it is in many of the member countries of the monetary Union negatively. The Figures of the statistics Agency Eurostat, which were released on Wednesday. In 12 of the 19 Euro area countries, inflation has rate, therefore, may sub-zero. Particularly strong are the prices in Estonia (minus 1.8 percent), Luxembourg (minus 1.6 percent) and Cyprus (-1.4 per cent) fell. Germany is measured by the so-called Harmonised index of consumer prices,with 0.5 percent more in the upper area.

Christian Siedenbiedel

editor in the economy.

F. A. Z.

the differences in The rates of inflation are apparently largely with a different price decay for energy. Over the whole of the Eurozone is considered, it was the only Post in which prices have fallen in may, strongly, to 11.9 percent. In Germany, the decline was expected to be only 8.5 percent.

Steffen Bukold by the consulting firm Energy Comment says, it could play a role, the proportion of the fixed components such as fees and taxes the energy prices in the countries was different; for example, the price of petrol that is so. This could have led to changes in the Market prices seen relatively made different noticeable. However, there are also large differences in the various Euro countries in consumer prices, especially for electricity and Gas.

Already fürJuni could the Euro-Inflation-negative

Already, in June, Inflation is expected to be for the Euro area as a whole is negative and will remain until may 2021 so, predicts the Economist Karsten Junius of Bank Sarasin. "For a lot of prices on the primary product level, such as the development of the so far for April present in producer prices, minus 4.5 percent and minus 1 Prozentim April, has also a negative import prices," said Junius. The expectations for the selling prices("Selling price expectations") were surveys zufolgein all sectors of the Economy (Retail, Construction, Industry, Services) in may negative.

A one-off effect of the VAT cut in Germany in July, is said Junius. Purely mathematically, you could push the inflation rate in Germany by 1.5 percentage points, the Euro inflation rate according to the German share by 0.4 percentage points. Junius expects at least for the Euro area, with minus 0.2 percent Inflation in June, for July, at minus 0.4 percent and the end of the year with a minus of 0.8 percent.

Updated Date: 17 June 2020, 16:19

You need to login to comment.

Please register or login.

RELATED NEWS