Consumer prices: the inflation rate in Germany is now negative?

Even if the Inflation in the Eurozone overall has dropped in the Corona-crisis to almost zero percent, but noticeable shifts in the relative prices observed. Th

Consumer prices: the inflation rate in Germany is now negative?

Even if the Inflation in the Eurozone overall has dropped in the Corona-crisis to almost zero percent, but noticeable shifts in the relative prices observed. The show two surveys to be more expensive that have become everyday products. The Internet comparison platform Idealo price reported increases for typical products for summer and garden in the network by up to 23 percent, which were not observed have been in other years. The price for garden chairs, for example, was in may, 14 percent above the average for the months of may, June and July of the past three years, garden tables, 12 percent, and a garden of 23 percentage even. Also grills have become more expensive, on average, only 2 per cent. For umbrellas, the Portal comes to a price increase of 8 percent. Garden hoses are, after all, has become 21 percent more expensive. And a bike carrier for the car had apparently increased due to more frequent holidays in the domestic price by 13 percent. Cheaper swimwear (minus 3 percent) is, however, possibly for lack of opportunity to use in many regions of Germany.

food and barbecue equipment more expensive

Christian Siedenbiedel

editor in the economy.

F. A. Z.

for food, there is reported an above-average price increases. The Economists of the University of Stuttgart-Hohenheim have updated their Chili-Index is still time for you to track the price development for 70 of the possible ingredients for the dish "Chili con Carne" since the beginning of the Crisis. From February to may, the price increase for these products, therefore, at 7.5 percent, as the study's author, Jan Swiatkowski said. Although it did at times in season also, even given declining prices for certain varieties of fruit and vegetables, over the entire period considered, but the Trend is clear. Thus, the price for minced meat in this period rose by 4.1 percent for carrots to 8.1 per cent and onions by 4 percent. In a two-digit percentage rates, the prices for tomatoes rose (plus 12.8 percent), Corn (plus 14 percent) and peppers (plus 14.7 percent). For the Chili Index, the Economists analyze large amounts of data on prices of supermarket chains in the Internet.

VAT reduction could reduce Inflation by a percentage point

next month is now set, however, the VAT in Germany for half a year, from 19 to 16 per cent – could turn out to be some everyday items for consumers cheaper. "Reducing the VAT is expected to reduce the inflation rate in Germany from July to around one percentage point" that has Jörg Krämer, the chief economist of Commerzbank, roll over, once. "We should come in the area of the zero line out, with a bit of a tailwind from Oil prices, the inflation rate for Germany could be in July, also negative."

Against a larger decline, by the fact that not all Goods and services, VAT seizures – so not for Hire, would have a share of 21 per cent of the basket of the Federal Statistical office. In addition, many companies are not likely to give the VAT reduction because of the due to Corona bad earnings completely on.

Updated Date: 12 June 2020, 10:21

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