Germany’s Inflation Rate Declined to Zero in May - by Francis Robinson
Germany’s inflation rate fell to zero in May for the first time in at least 13 years on lower energy costs and weakening demand. Consumer prices, calculated using a harmonized European Union method, were unchanged from a year earlier after increasing 0.8 percent in April, the Federal Statistics Office in Wiesbaden said today. The May figure, revised from an initial estimate of minus 0.1 percent, is the lowest inflation reading since harmonized data were first compiled in 1996.
A 46 percent decline in crude oil prices over the past year is pushing down inflation at the same time as companies cut prices to tackle the deepest recession since World War II. The European Central Bank has downplayed the chance of deflation in Europe, with President Jean-Claude Trichet saying inflation will only temporarily move into negative territory this year. Germany’s inflation rate fell to zero in May for the first time in at least 13 years on lower energy costs and weakening demand.
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