Inflation: prices fall more than expected – Times Online

Inflation: prices fall more than expected – Times Online

The inflation rate was the lowest since 2009 is not in Germany in January more. Reason, falling oil and food prices.

12th February 2015 08:58 clock

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Also falling food prices are for low inflation responsible. | © Fabrizio Bensch / Reuters

The consumer prices in Germany in January fell even more than initially estimated. The inflation rate was down 0.4 percent and not at minus 0.3 percent, the Federal Statistics Office in Wiesbaden said on Thursday. A lower rate of inflation, there was, according to statisticians recently in July 2009, down 0.5 percent. Reason then was the global economic crisis. Compared to the previous month, consumer prices fell by 1.1 percent.

The main reason for the decline in consumer prices was the further fall in oil prices. Compared to the previous month, the prices of petroleum products fell by 19.2 percent. Heating oil was, according to the statisticians almost 31 percent cheaper than in January 2014 was fueling the previous year more than 15 percent cheaper. At the same time, there was only moderate changes in prices for electricity and gas. Total energy prices were therefore at nine percent. Energy prices is also excluded, the inflation rate should be around statisticians located at plus 0.8 percent.

But even declining food prices were partly responsible for the development. Food prices fell by 1.3 percent. Thus, butter discounted by 18.7 percent, vegetables by 5.9 percent, fruit 3.2 percent and dairy products and eggs by 2.1 percent. But were also consumer electronics devices (minus 7.9 percent), and phones with minus 6.4 percent, considerably cheaper. More expensive, as were many services and housing rents, the latter by 1.3 percent.

Lower energy costs According to experts provide in the coming months for negative inflation rates. Deflation – whose traits are not only falling prices but also falling consumer spending and investment – do not fear but most analysts. The lower energy bill relieves consumers and businesses billions. The money saved can be spent on other things, which in turn boosts the economy and can drive up prices. Therefore, many experts believe that prices will rise again in the second half.