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- German consumer inflation unchanged in August
German consumer inflation unchanged in August
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 0.0% in August 2020. This means the inflation rate remained at a low level in August 2020, too. In July 2020, it had been -0.1%.
One of the reasons for the low inflation rate is still the temporary value added tax reduction, which was implemented on 1 July 2020 as a measure of the Federal Government's stimulus package. Since then, it has had a downward effect on the consumer prices compared with a year earlier. As, however, many other factors have an impact on the price development, it is difficult to measure the extent to which the lower tax rates were passed on to the consumers.
Compared with July 2020, the overall consumer price index fell by 0.1% in August 2020. Energy product prices declined by 0.5%; consumers paid less especially for heating oil (-4.1%) and motor fuels (-0.6%). Food prices (total) fell slightly, too (-0.3%, including vegetables: -2.7%). Price rises were observed, for example, for clothing (+0.9%).
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