Inflation in Germany in May fell to a record in 4 years

Inflation in Germany in May fell to a record in 4 years

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Inflation in Germany, calculated according to EU standards, rose last month by 0.6% in terms of annual growth. This is a minimal increase in consumer prices for 4 years (since February 2014), confirmed by the data of the Federal Statistical Office of the country (Destatis).

On a monthly basis, prices fell by 0.3%. Dynamics of both measures to meet the expectations of economists surveyed by Bloomberg.

Inflation, harmonized with German standards, increased in May by 0.9% compared with the same month in 2013 and fell by 0.1% on a monthly basis, in line with analysts’ forecasts.

In Germany, food prices fell by 0.4% compared with May, the cost of alcohol and tobacco products increased by 0.1%, clothing and footwear fell 1.3%.

Electricity gone up in May by 0.1%, the cost of gas has not changed. European Commission forecasts that consumer price inflation in Germany in the current year will be 1.1% and accelerate to 1.4% next year.

Bundesbank lowered its forecast for inflation in Germany this year amid European regulators struggle with the risk of deflation in the region.

German central bank has lowered its forecast for 2014 growth in the level of consumer prices up 1.1% against the expected 1.3% in December. At the same time the German Central Bank raised its forecast for GDP growth to 1.9% from 1.7%.

Recall, after a meeting of the European Central Bank (ECB) lowered its benchmark interest rate on loans for 10 b. n (0.25%) to 0.15%, setting a new record, according to a press release from the regulator