Consumer prices fell 0.3 percent yoy in December
The average cost of living in Germany continues to decline. The Federal Statistical Office announced that consumer prices fell by 0.3 percent in December compared to the same month last year. A preliminary estimate was thus confirmed. The rate has been negative for several months. Compared to November, however, the price level rose by 0.5 percent. Analysts had expected this on average.
The HICP consumer price index, which is collected for European purposes, fell 0.7 percent year-on-year and rose 0.6 percent month-on-month. One reason for the year-on-year decline in the cost of living is the VAT reduction that will apply until the end of 2020 to dampen the economic consequences of the corona pandemic. Another reason is falling oil prices year-on-year.
According to the Federal Office, consumer prices rose by 0.5 percent over the previous year in 2020 as a whole. That was the weakest increase since the financial and economic crisis in 2009. The HICP rose by 0.4 percent compared to the previous year.
