Fruit and meat is more expensive, Less VAT and energy prices provide negative Inflation

Inflation is Different than in the United States in Germany continues to decline and even negative. The Federal Statistical office confirmed on Thursday its pre

Fruit and meat is more expensive, Less VAT and energy prices provide negative Inflation

Inflation is Different than in the United States in Germany continues to decline and even negative. The Federal Statistical office confirmed on Thursday its previous estimate that the consumer prices declined in July compared to the previous month, by 0.1 percent. In the United States, a rise in Inflation of 0.6 percent in June, was reported on Wednesday to 1 percent in July.

Christian Siedenbiedel

editor in the economy.

F. A. Z.

A more important reason for the decline in Inflation in Germany, the reduction in VAT was. As the Federal Statistical office said would have reduced a full disclosure of the tax reduction in Inflation by 1.6 percentage points. Economists believe that they have observed empirically, an impact of approximately 1 percentage point. The prices Were on the whole reduced by 1.4 percent. Cheaper, especially fuel oil (down 31.3 percent) and fuels (minus 12.9 per cent) were.

in Addition, the electricity price increased by only 2.1 percent, in June it had been 4.1 percent. Also, the rate of price increases for food slowed, from 4.4 to 1.2 percent; however, significantly more expensive fruit (plus 7.8 percent) and meat (plus 5.5 percent). Also, tobacco products were exempt from the tax reduction, were more expensive (plus 6.6 per cent). Tickets for long-distance transport were, however, considerably cheaper (minus 16 percent). The net cold rent increased by an average of 1.4 percent. Clothing and footwear fell by 1.7 per cent.

Updated Date: 13 August 2020, 10:20

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