The consumer prices in Germany have not changed on average in August. Compared to the same month last year, the price stagnated level, as the Federal Statistical office announced on Monday in Wiesbaden. Analysts had expected on average, with a slight increase. In the month of July, the prices had been for the first time since 2016 is negative.
Carsten Brzeski, the chief economist of ING Bank, said with the reduction of the VAT and the currently low energy prices."The consequences of the Corona-crisis left behind in the development of inflation are significant traces. Normal seasonal price patterns are disturbed, and special effects such as the temporary reduction in VAT distort,“ says Jörg Zeuner, the chief economist of Union Investment."Would have given all companies the reduction in full to the consumer, would have been the dampening effect is even greater and the inflation rate in the negative area of slipped," he says.
For the full year, attributed to zeuner in Germany, with an inflation rate of 0.7 percent.For the Helaba analyst Ralf circulation shows that"the massive expansion combined fiscal measures with extremely loose monetary policy on the price to happen by works".The medium and long term, one cannot exclude a "More Inflation", but.
Goods fell in August to an average of 1.3 percent. The energy prices fell 6.3 percent, which is particularly strong. Food rose 0.7 percent, significantly less than, for example, in may/June, when there were price increases of more than 4 percent. Services cost one percent more than the prior year period. The apartment rents increased a further 1.4 percent.
In a monthly comparison, the price level fell in August by 0.1 percent. For European comparison purposes imposed price index, the HICP decreased year-on-year month-by 0.1 percent compared to the previous month by 0.2 percent. The European Central Bank aims for the whole of the Euro area an inflation rate of just under 2 percent. In the currency space, the inflation rate is clearly below this value.Updated Date: 31 August 2020, 20:19