Inflation rate in Germany remains unchanged

The inflation rate in Germany remained at 1.7 per cent in February compared to the previous month, the Federal Statistical Office (Destatis) announced yesterday.

At the same time, the total prices of goods were up 1.8 per cent in February year-on-year, it said.

Food prices increased above average by 3.3 per cent. Destatis noted that “marked price increases” were recorded for fruit, up by 9 per cent, and meat and meat products, up by 8 per cent.

Prices for energy products in Germany rose by 2 per cent year-on-year. Prices for electricity were up 4.4 per cent while prices for heating oil were “considerably down” by 10.1 per cent, according to Destatis.

The Statistical Office noted that the “price development of food and energy had an upward effect on the inflation rate” in February. Excluding food and energy prices, the inflation rate in Germany would have only been at 1.5 per cent.

On Thursday, the Kiel Institute for the World Economy (IfW Kiel) announced “a severe economic slump” due to the coronavirus, and lowered its forecast for German gross

domestic product (GDP) by 1.2 percentage points to minus 0.1 per cent in 2020.

 

Inflation rate in Germany remains unchanged

The inflation rate in Germany remained at 1.7 per cent in February compared to the previous month, the Federal Statistical Office (Destatis) announced yesterday. At the same time, the total prices of goods were up 1.8 per cent in February year-on-year, it said. Food prices increased above average by 3.3 per cent. Destatis noted that marked price increases were recorded for fruit, up by 9 per cent, and meat and meat products, up by 8 per cent. Prices for energy products in Germany rose by 2 per cent year-on-year. Prices for electricity were up 4.4 per cent while prices for heating oil were considerably down by 10.1 per cent, according to Destatis. The Statistical Office noted that the price development of food and energy had an upward effect on the inflation rate in February. Excluding food and energy prices, the inflation rate in Germany would have only been at 1.5 per cent. On Thursday, the Kiel Institute for the World Economy (IfW Kiel) announced a severe economic slump due to the coronavirus, and lowered its forecast for German gross domestic product (GDP) by 1.2 percentage points to minus 0.1 per cent in 2020.