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Germany's inflation rate declines at beginning of 2019

Source: Xinhua| 2019-02-22 01:04:50|Editor: Mu Xuequan
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BERLIN, Feb. 21 (Xinhua) -- Germany's inflation rate declined to 1.4 percent in January 2019, according to preliminary official figures by the Federal Statistical Office (Destatis) published on Thursday.

Compared with previous month's figures, the German consumer price index on which the German inflation rate is based dropped by 0.8 percent. The inflation rate in Germany was lower than it had been for the past nine months but at the same level as January 2018.

The "main reason" for the decrease of the German inflation rate had been falling energy prices, the statistical office announced. In November 2018, energy prices in Germany increased by 8.7 percent. In December, the price increase was already down to 4.9 percent and now it is at 2.3 percent.

In addition, a slowdown of rents for houses or apartments exclusive of heating and other additional costs to 1.5 percent also contributed to the lower inflation rate, as private households usually spend a large part of their available income on housing.

Although the rise in food prices was below the overall inflation rate in Germany, consumers had to pay significantly more for vegetables, marking a price increase of 6.3 percent. However, other food products such as fruits decreased in price by 5.1 percent over same period last year.

In 2018, the German inflation rate peaked at 2.3 percent in October and averaged at approximately 1.8 percent. The European Central Bank (ECB) has set an official inflation target of close to below 2 percent for members of the eurozone.

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