The inflation rate in Germany remained unchanged in February. The Federal Statistical Office announced that consumer prices for goods and services were once again 1.7 percent above the level of the previous month. Falling Oil prices could, however, reduce price pressure in the future: the corona virus pandemic and the price war between Saudi Arabia and Russia have made the important raw material significantly cheaper in recent days.
In February, groceries in particular became significantly more expensive, costing on average 3.3 percent more than a year earlier. This demanded 9.0 percent more for fruit and 8.0 percent for meat and meat products. Energy rose by 2.0 percent. The price increases for electricity (+4.4 percent) and fuels (+3.0) were offset by a significant decrease in heating oil (-10.1). Services cost 1.6 percent more, with net cold rents rising 1.5 percent.
Economists assume that the inflation rate will remain below the two percent mark both this year and next. The Ifo Institute expects an average inflation rate of 1.5 percent for 2020, which should climb to 1.6 percent in 2021.