A liter of gasoline costs around 20 cents less than it did in the spring. How the reduction in the inflation rate came about and why it should be viewed with caution.
The national average price for a liter of gasoline is currently just over 1.70 euros. That is around 20 cents less than in the spring, and at the same time it is the lowest price level in more than a year and a half. Diesel and heating oil have also become cheaper. This is why the inflation rate is falling: the Federal Statistical Office estimates that prices rose by 1.9 percent in August. That is the lowest increase in three and a half years.
A classification of the inflation rate
This is good news, but it should be treated with caution. Oil products are billed in US dollars. And the American currency has been weakening against the euro for several months. This meant that more fuel was available for the same money. But this price-dampening currency effect does not have to stay that way: if the dollar price rises, our petrol prices will also rise.
There is also still an increase in prices outside of petrol stations: if you exclude the development of energy and food prices, it was 2.8 percent in August. This also explains why economists are noticing a continued reluctance to consume despite rising real wages.
Wages are rising
Consumer scepticism is not unfounded: rising wages keep prices for goods and services high, which can be seen at the hairdresser’s, in restaurants and on tradesmen’s bills. Although analysts expect inflation rates to remain tolerable in the short term, they do not want to give the all-clear in the medium term. Experience shows that higher production costs end up on the price tags in the shop with a time delay. How much of this and when? The inflation rate will reveal this in a few months.
Source: Stern
