Consumer prices in July 2009: Presumably –0.6% on July 2008
Negative inflation rate for the first time since March 1987
WIESBADEN – As reported by the Federal Statistical Office (Destatis), the consumer price index for Germany is expected to decline 0.6% in July 2009 compared with July 2008 (June 2009 on June 2008: +0.1%), according to results available from six Länder. Compared with the previous month, the index will be down by 0.1%. In Germany, a negative inflation rate was last recorded in March 1987 (–0.3%). Between April 1986 and April 1987, the inflation rate ranged continuously between +/–0% and – 1.0%. Then as now, the reason for that development was a strong year-on-year decline in liquid fuel and motor fuel prices, which reached a peak in July 2008. After a short increase in June, the prices of liquid fuel and motor fuels declined again on the previous month. Between June and July 2009, motor fuel prices declined between 3.6% and 5.5% and liquid fuel prices were down between 2.1% and 8.1%, depending on the Land concerned. Compared with July 2008, however, they were considerably lower (motor fuels: –19.6% to –20.7%; liquid fuel: –36.6% to –46.3%). Due to seasonal factors, the month-on-month food prices, too, declined again (–0.8% to –1.8%), after an increase was observed in June for the first time since January 2009. Compared with July 2008, food prices fell by 1.2% to 3.3%. The harmonised consumer price index for Germany, which is calculated for European purposes, is expected to decrease by 0.6% in July 2009 on July 2008 (June 2009 on June 2008: +/–0.0%). Since the harmonised consumer price index for Germany was compiled for the first time in January 1995, a year-on-year decline has not been recorded before. Compared with the preceding month, the index will not change. The final results for July 2009 will be released on 11 August. >>> brief methodological description
