Thursday, January 29, 2015
Now it is well done: For the first time since 2009 in Germany, consumer prices go down. Although the Federal Statistical Office comes in the afternoon with the national figures. But some important countries reported already a price decline.
Life in Germany is cheaper – for the first time since the severe economic and financial crisis in 2009. In the states of Bavaria, Hesse, North Rhine-Westphalia and Saxony, consumer prices fell in January between 0.2 and 0.6 percent last month , as is evident from published data.
Economists expect, therefore, that the inflation rate is nationwide land in negative territory for the first time since September 2009. The Federal Statistical Office intends to publish a first estimate in the afternoon.
“The decline is primarily due to falling energy prices,” said economist Jennifer McKeown of Capital Economics. The price of oil has fallen by more than half since the summer, doing what fueling and heating cheaper.
“Good for Growth”
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The Experts predict that prices will continue to fall. “Energy costs are covered care in the coming six months of negative inflation rates,” McKeown said. The cost savings based on the economy. “This is good for growth,” said analyst Christian Schulz of Berenberg Bank. “Save consumers money they can spend on other things.”
Because of low inflation in the monetary union floods the European Central Bank (ECB), the markets with cheap money. ECB President Mario Draghi announced only last week on one of the largest bond-buying programs that ever existed. He wants to prevent the economy from slipping into deflation, which is a dangerous downward spiral of falling prices across the board and declining investment.