Annual Inflation Below 2 Percent in Germany

Annual Inflation Below 2 Percent in Germany

Annual inflation in Germany remained below 2 percent. CPI increased by 1.7 percent in January compared to last year and decreased by 0.6 percent compared to December 2019. Inflation in Germany increased by 0.4 percent on a monthly basis in February. Destatis emphasized that the 8 percent increase in meat and meat product prices, 9 percent in fruit prices and a 3.3 percent increase in food prices were effective in this. The announced data confirmed the leading data previously published. In the Destatis statement, it was noted that the developments in food and energy product prices in February were increasingly effective when we look at the general price movements. The prices of energy products, which differed in demand and supply, increased by 2 percent compared to February of 2019. Looking at the same period last year in February, we can say that electricity prices increased by 4.4 percent and motor fuel prices increased by 3 percent. Excluding energy and food prices, annual inflation was 1.5 percent last month. In Germany, the EU-compatible pioneer CPI rose by 0.6 percent on a monthly basis and 1.7 percent on an annual basis in February. While the costs for services fell 1.6 percent in the country, rent increased by 1.5 percent, excluding heating costs, which is one of the largest household expenditures. Experts say that the oil prices, which are in an incredible collapse due to price wars and coronavirus, will reduce the pressure on prices in the future periods, and expect inflation in the country to remain below 2 percent this year and next year. The German Economic Research Institute expects inflation in the country to average 1.5 percent this year and increase to 1.6 percent next year.