Press release No. 215 of 15 June 2020
WIESBADEN − The measures adopted by the federal cabinet on 12 June 2020 to support the short-term economic development and manage the crisis caused by the coronavirus pandemic will also have an impact on consumer prices. The Federal Statistical Office (Destatis) also reports that the announced value added tax cut intended to support domestic demand and reducing VAT from 19% to 16%, and from 7% to 5%, is expected to - mathematically - lead to a 1.6% decrease in consumer prices, provided that the reduction is entirely passed on to consumers.
