Germany's Annual Inflation Remained Steady in August

Germany's Annual Inflation Remained Steady in August Germany's annual inflation remained steady in August. Inflation in Germany remained unchanged due to the VAT reduction. The German Federal Statistical Office (Destatis) released the final Consumer Price Index (CPI) data for August. According to the data announced, the CPI in Germany did not change in August compared to the previous year. On a monthly basis, inflation fell 0.1 percent in Germany. The disclosed data confirmed previously published leading data. The CPI, on the other hand, fell below zero for the first time since 2016 with the effect of the VAT reduction in July and became -0.1 percent. In the statement made by Destatis, the VAT reduction in all consumption goods and the ongoing decline in the prices of energy products despite the slowdown compared to July caused an average of 1.3 percent decrease in the prices of commercial products; Therefore, it was said that this situation prevented inflation from changing. The prices of energy products, which differ according to demand and supply, decreased by 6.3 percent compared to August 2019, with the decrease in oil barrel prices in international markets. In August, compared to the same period last year, electricity prices increased by 2.1 percent, while motor fuel prices decreased by 11.3 percent. Food prices in the country increased by 0.7 percent in August compared to the same month of 2019. Excluding energy and food prices, annual inflation was 0.7 percent last month. In Germany, the leading European Union (EU) compliant CPI was 0.2 percent in August compared to the previous month; Compared to the previous year, it decreased by 0.1 percent. Costs for services in the country increased by 1 percent; excluding heating costs, the rent rose 1.4 percent.