By John Meyer, consultant in financial markets, for Eurasia Business News, August 10, 2022
The inflation rate in Germany, measured as the year-on-year change in the consumer price index, stood at +7.5% in July 2022. Photo : Berlin, Germany, 2021.
Retail sales in Germany in June unexpectedly fell by 1.6% compared to the previous month, according to preliminary data from the country’s Federal Statistical Agency (Destatis).
Analysts expected an increase of 0.2%.
In May, the indicator, according to revised data, grew by 1.2%. Initially, an increase of 0.6% was reported.
The fall in retail sales is due to high inflation, which has a significant negative impact on consumer sentiment, Destatis reported.
Sales of food products in Germany in June decreased by 1.6%, sales of non-food products last month decreased by 3.3%.
Online sales and mail orders decreased by 3.8%.
Retail sales in Germany in June compared to the same month last year fell by 8.8% after a decrease of 3.6% in May. The fall in the indicator in June was the maximum since the beginning of its accounting in 1994, according to Destatis. Experts predicted a drop of 8%.
According to preliminary data, the cost of energy in Germany in July increased by 35.7% in annual terms (38% in June), food – by 14.8% (12.7% in June), services – by 2% (2.1% in June).
In July 2022, energy prices were 35.7% higher than in the same month last year. Food prices also rose at an above-average rate of +14.8%. Significant price increases on the upstream economic stages have a price-increasing effect.
The inflation rate in Germany, measured as the year-on-year change in the consumer price index, stood at +7.5% in July 2022. Although the rate of inflation was slightly down again, it remained at a high level clearly above 7%, reported Destatis.
In June 2022, the inflation rate had stood at +7.6% and in May 2022 at +7.9%.
“The main reason for the high inflation still is price rises for energy products. Two measures of the relief package have had a slight downward effect on the overall inflation rate since June 2022: the 9-euro ticket and the fuel discount. In addition, the EEG surcharge was abolished in July 2022”, says Dr. Georg Thiel, President of the Federal Statistical Office. The Federal Statistical Office (Destatis) also reports that consumer prices in July 2022 were up 0.9% on June 2022.
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