D he crash in oil prices, the inflation rate in Germany in 2014 down to its lowest level since 2009. The annual inflation rate fell last year to 0.9 percent, the Federal Statistics Office in Wiesbaden, according to preliminary figures announced. In 2013, the price increase had stood at 1.5 percent. In December, consumer prices reportedly increased by only 0.2 percent. A lower rate of inflation had been measured recently in October 2009 with 0.0 percent. The final results for December published by the Federal Statistical Office on Friday in a week.
The price of oil has lost in value in six months by about half. In December, energy prices fell by 6.6 percent in this country for the previous year. What would be the driver who brings the European Central Bank (ECB) in a predicament. She is increasingly coming under pressure to pump more money into the financial system and thus to guard against a harmful economic decline in prices across the board. The pressure is likely to increase if the inflation rate in the euro zone should fall on Wednesday, according to experts. The ECB sees stable prices at a rate of two percent guaranteed missed this goal, however, for some time significantly. Most recently, at the rate of inflation in September 2013, one before the decimal point.
The ECB wants with all his might avoid deflation, or a spiral of ever-falling prices across the board. This could cripple the economy, as declining sales and earnings could be the result. The monetary authorities have already lowered its benchmark interest rate to a record low of 0.05 percent and decided to purchase mortgage-backed securities and mortgage bonds. According to experts, the likelihood that the ECB announced at its next interest rate meeting on 22 January, the purchase of government bonds on a large scale. With such a flood of money they could fuel inflation and at the same time artificially stimulate the economy flat ones.
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