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- German consumer price growth slowed less than forecast in April
German consumer price growth slowed less than forecast in April
According to the report from Federal Statistical Office (Destatis), the inflation rate in Germany, measured as the year-on-year change in the consumer price index, stood at +0.9% in April 2020. This means that the inflation rate was down again (March 2020: +1.4%; February 2020: +1.7%). Economists had expected a 0.8% increase in April.
The prices of goods (total) increased by 0.3% between April 2019 and April 2020, which was below average. This was mainly due to a 5.8% decline in energy product prices. While the prices of mineral oil products recorded a decline, some other prices went up, for instance, electricity prices (+4.4%). Food prices also climbed substantially (+4.8%). The effects of the corona crisis were reflected especially by increasing fruit (+11.0%) and vegetable prices (+6.5%).
The prices of services (total) increased above average in April 2020 on the same month a year earlier (+1.3%). A major factor contributing to the development of service prices was the increase in net rents exclusive of heating expenses (+1.4%), as households spend a large part of their consumption expenditure on this item.
Compared with March 2020, the overall consumer price index was up 0.4% in April 2020. Economists had expected a 0.3% increase. The increasing food prices (+1.1%) are worth mentioning in this context. Compared with the previous month, consumers paid more especially for vegetables (+5.1%). However, the prices of energy products were down (-3.0%); above all motor fuels became less expensive (-8.3%).
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