Energy cheaper
Relief for consumers: inflation drops to 2.1 percent
The inflation in Germany lost speed in the second month in a row. Above all, that has a reason. It often looks different when purchasing daily.
Relief at the petrol pump – but expensive weekly shopping: life in Germany was no longer as strong as in the months before. The inflation rate has been pressing cheaper energy since October: Consumer prices were 2.1 percent above the level of the previous year, as the Federal Statistical Office confirmed.
In March the annual inflation rate was still 2.2 percent, in the two months before it was 2.3 percent. The higher the rate, the lower the purchasing power of the people: they can then afford less for one euro. From March to April of the current year, consumer prices, according to the Wiesbaden statisticians, attracted a total of 0.4 percent.
Stubborn inflation for services
Economists expect the inflation rate in Europe’s largest economy to remain between 2.0 percent and 2.5 percent in the coming months, even though the upgrading of the euro and the sunken energy prices are dampening. “Above all, the service inflation shows-despite the economic flakes, weakening of the labor market and evasive pressure from the wage boiler-much more stubborn than expected,” analyzes Deutsche-Bush economist Sebastian Becker.
In April, the prices for services such as flight tickets (plus 19.1 percent) and package tours (plus 9.2 percent) as well as visits to the restaurant (plus 4.2 percent) attracted a total of 3.9 percent due to the late Easter. This means that the increase in service prices is higher than in other EU countries – also due to higher wage increases in this country.
Food also continued to be more expensive at 2.8 percent, although the price pressure decreased somewhat. The prices for seasonal products such as fruit (plus 6.0 percent) and vegetables (plus 5.6 percent) sometimes attracted significantly. Economists expect this trend to reverse in the summer months.
Energy prices dropped significantly
There was relief in April at the energy prices because the oil price in the meantime in the meantime and growing worries about the global economy in the meantime. Heating oil, diesel and petrol became cheaper. Fuel prices were 8.3 percent lower than a year ago. According to the Federal Office, energy prices were 5.4 percent below the level of the previous year.
What is concerned about economics: The so -called core inflation rate without the prices for energy and food that is prone to fluctuations increased to 2.9 percent in March in April.
dpa
Source: Stern
