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- German consumer price growth accelerated in June
German consumer price growth accelerated in June
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 June 2020. Hence the inflation rate increased slightly in June 2020 (May 2020: +0.6%). Destatis also reports that consumer prices rose by 0.6% compared with May 2020.
The prices of goods (total) rose by just 0.2% from June 2019 to June 2020, which is mainly due to the decreases in energy prices (-6.2%). The price decrease thus slowed (May 2020: -8.5%), above all due to the increase in oil prices in the world market. Especially the prices of heating oil (-26.5%) and motor fuels (-15.1%) were down in June 2020 on the same month of the preceding year, whereas electricity prices were up 4.1%. Also, Food prices increased above average (+4.4%). Prices were up in particular for fruit (+11.1%) and for meat and meat products (+8.2%), while the prices of edible fats and oils declined (-3.6%). Other notable price rises were observed for tobacco products (+6.2%) as well as newspapers and periodicals (+4.5%), while price decreases were recorded, for example, for information processing equipment (-4.9%).
The marked year-on-year decrease in energy product prices had a downward effect on the inflation rate. Excluding energy product prices, the inflation rate would have been +1.6% in June 2020; excluding the prices of energy products and food, it would have been just +1.3%.
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