BERLIN, July 29 - Lower oil price sends German inflation rate into -0.6 percent in July 2009 compared with July 2008, the German Federal Statistics Office (Destatis) said on Wednesday in Wiesbaden.
In Germany, a negative inflation rate was last recorded in March 1987 at -0.3 percent, said Destatis. 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. It was lower than the 0.4 percent decline forecast by economists, according to the local media reports.
Some analysts believe oil prices will rise again as energy prices are climbing and the economy looks set to recover. European Central Bank President Jean-Claude Trichet said on July 2 that he expected the current extremely low or negative inflation rates to be "short-lived," and the central bank have taken measures to protect the economy of the 16 euro nations from the "shorter-term threats of deflation."
The harmonized inflation rate for Germany, which is calculated for European purposes, is expected to decrease by 0.6 percent in July 2009, said Destatis. The final results for July 2009 will be released on Aug. 11.
In Germany, a negative inflation rate was last recorded in March 1987 at -0.3 percent, said Destatis. 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. It was lower than the 0.4 percent decline forecast by economists, according to the local media reports.
Some analysts believe oil prices will rise again as energy prices are climbing and the economy looks set to recover. European Central Bank President Jean-Claude Trichet said on July 2 that he expected the current extremely low or negative inflation rates to be "short-lived," and the central bank have taken measures to protect the economy of the 16 euro nations from the "shorter-term threats of deflation."
The harmonized inflation rate for Germany, which is calculated for European purposes, is expected to decrease by 0.6 percent in July 2009, said Destatis. The final results for July 2009 will be released on Aug. 11.
