Last month, the inflation rate was slightly in the red. One of the reasons for this continues to be the temporary reduction in VAT rates.
Wiesbaden (dpa) – Inflation in Germany remained below zero for the third time in October.
The Federal Statistical Office announced that consumer prices were 0.2 percent below the level of the same month last year, cushioned by the reduction in VAT and the sharp drop in energy prices. The Wiesbaden authority had already calculated an annual inflation rate of minus 0.2 percent in September. In July it was minus 0.1 percent.
Since July, the lower VAT rates have been in place for half a year. The federal government wants to boost consumption in the Crown crisis. However, retailers and service providers are free to decide whether and how they pass the relief on to consumers.
Consumers had to pay much less for energy in October than the previous year: heating oil (-37.2 percent) and fuels (-10.7 percent) became significantly cheaper. The economy collapsed in the Crown crisis and with it the global demand for crude. In contrast, food prices rose 1.4 percent in October, especially meat and fruit. Consumers also had to pay more for tobacco products (+ 5.4 percent).
Compared with September, consumer prices rose 0.1 percent in October, according to statisticians, who confirmed preliminary data.