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- Germany's consumer price index rose in line with forecasts
Germany's consumer price index rose in line with forecasts
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 +0.6% in May 2020. The inflation rate decreased for the third consecutive month. Destatis also reports that consumer prices fell by 0.1% compared with April 2020.
The prices of goods (total) decreased by 0.4% from May 2019 to May 2020. This was mainly due to the decline in energy product prices, which accelerated to 8.5% (April: -5.8%). As a oil price slump in the world market, which has been observed since the beginning of the year, in particular the prices of heating oil (-30.5%) and motor fuels (-20.7%) declined sharply compared with the same month a year earlier. Electricity prices, in contrast, rose by 4.2%. This was still due to the increase in the EEG surcharge at the beginning of the year. Food prices rose by an above-average 4.5% compared with May 2019. Consumers paid higher prices especially for fruit (+10.5%) and for meat and meat products (+9.2%), while the prices of edible fats and oils declined (-4.5%).
In particular, the sharply decreasing prices of energy products had a downward effect on the inflation rate. Excluding energy product prices, the inflation rate would have been much higher at +1.6% in May 2020.
Compared with April 2020, the overall consumer price index was down by 0.1% in May 2020. Energy product prices declined markedly by 1.3%, especially the prices of heating oil (-7.0%) and motor fuels (-2.4%). Fruit prices, in contrast, were up by 1.3%.
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