The inflation rate in Germany continued to fall and stood at 0.9 percent in April, the Federal Statistical Office (Destatis) announced on Thursday.
In February, the inflation rate stood at 1.7 percent, while in March, at 1.4 percent, according to Destatis.
"The coronavirus shock will continue to cause very little upward movement in prices," Markus Demary, an economist with the German Economic Institute (IW), told Xinhua on Thursday.
Although people would visit restaurants and shops again as a result of the easing of coronavirus restrictions in Germany, many citizens "will still be cautious and prefer to cook at home or shop online," added Demary.
According to Destatis, the prices of goods in Germany increased only 0.3 percent in April compared to the same month last year, which was below average. The development was mainly due to a 5.8 percent decline in prices of energy products.
"Heating oil prices declined most sharply due to the oil price slump in the world market observed since the beginning of the year," which was mainly due to the coronavirus pandemic, Destatis noted.
In April, prices of heating oil in Germany decreased markedly by 23.7 percent year-on-year. Consumers also paid less for motor fuels because a decrease of 15.4 percent was recorded, according to Destatis.
"Demand for gasoline and kerosene is likely to remain low due to reduced travel activity," expected Demary. "Since the price of oil is an important driver of inflation," a stronger upward trend in prices could only be expected again when the oil price would rise.
Destatis noted that food prices in Germany, on the other hand, "climbed substantially" by 4.8 percent. The effects of the coronavirus crisis were reflected especially by increasing fruit prices, with a plus of 11 percent, and vegetable prices, with a plus of 6.5 percent.
Source: Xinhua |
