German inflation at four-year low – Cash

German inflation at four-year low – Cash

Depth inflation rates in the euro area make the ECB in Frankfurt (image) worries
image. cash

08/13/2014 08:00

Cheaper heating and fueling inflation has pushed Germany to the lowest level in four and a half years.

Goods and services would have cost in July on average only 0.8 percent more than a year earlier, said the Federal Statistical Office on Wednesday. Low inflation fell last in February 2010 with 0.5 percent, as the economy struggled with the aftermath of the global financial crisis. In June it stood at 1.0 percent. The European Central Bank (ECB) speaks only at values ​​of just under two percent of stable prices.

Relieves consumers were mainly in energy costs, which fell

by an average of 1.5 percent. “In contrast to the previous months, energy prices thus gone back again stronger,” declared the statistician. Domestic fuel cost 6.0 percent less than in July 2013, 3.1 percent less fuel. Power increased in contrast to 1.7 percent.

Food cost on average 0.1 percent more. Less consumer had to pay for fruit (? 4.8 percent). Was even cheaper vegetables with minus 7.7 percent. Here, potatoes peppers discounted by nearly a third, to 18.1 percent and 16.6 percent cucumbers. More expensive than a year ago, however, remained dairy products. Cheese for 14.7 percent more were required for Quark 13.8 percent and 6.4 percent more for yogurt

Reuters poll of economists say for this year average inflation rate of 1.1 percent advance. 2015 is expected to rise to 1.8 percent. One reason for this rising wage costs, which are expected to pass on to their customers the company.

(Reuters)