Press release No. 350 of 11 September 2020
Consumer price index, August 2020
0.0% on the same month a year earlier (provisional result confirmed)
-0.1% on the previous month (provisional result confirmed)
Harmonised index of consumer prices, August 2020
-0.1% on the same month a year earlier (provisional result confirmed)
-0.2% on the previous month (provisional result confirmed)
WIESBADEN −The inflation rate in Germany, measured as the year-on-year change in the consumer price index, stood at 0.0% in August 2020. This means the inflation rate remained at a low level in August 2020, too. In July 2020, it had been -0.1%. The Federal Statistical Office (Destatis) also reports that consumer prices decreased by 0.1% compared with July 2020.
Value added tax cut effective from 1 July 2020 continues to dampen prices
One of the reasons for the low inflation rate is still the temporary value added tax reduction, which was implemented on 1 July 2020 as a measure of the Federal Government's stimulus package. Since then, it has had a downward effect on the consumer prices compared with a year earlier. As, however, many other factors have an impact on the price development, it is difficult to measure the extent to which the lower tax rates were passed on to the consumers.
Slightly smaller year-on-year decline in energy product prices, but food prices continue to increase moderately (+0.7%)
The prices of goods (total) decreased by 1.3% from August 2019 to August 2020. This was mainly due to price decreases for energy products (-6.3%). The price decrease was however slightly smaller than in July 2020 (-6.7%). Especially the prices of heating oil (-32.7%) and motor fuels (-11.3%) were down in August 2020 on the same month of the preceding year, whereas electricity prices were up 2.1%. Food prices rose by just 0.7%. In July 2020, the rate of food price increase had been 1.2%. Prices were down especially for vegetables (-6.8%), whereas prices rose especially for fruit (+5.8%) and meat and meat products (+4.8%). Other notable price rises were observed for tobacco products (+6.5%), while price decreases were recorded, for example, for consumer electronics (-4.3%).
Inflation rate excluding energy products (+0.7%) higher than overall inflation
The marked year-on-year decrease in energy product prices had a downward effect on the inflation rate. Excluding energy product prices, the inflation rate would have been +0.7% in August 2020.
Above-average 1.0% increase in service prices compared with a year earlier
The prices of services (total) were up 1.0% in August 2020 on the same month of the previous year. A major factor contributing to this price development was the increase in net rents exclusive of heating expenses (+1.4%), as households spend a large part of their consumption expenditure on this item. Despite the reduction in value added tax, however, higher prices had to be paid also for hairdresser services and other services for personal care (+4.8%) and for visits to restaurants, cafés and the like (+1.9%). One reason probably was that hygienic measures continue to apply that were introduced after reopening during the corona pandemic. Even higher price increases were recorded for services of social facilities (+5.6%), especially for home care services (+7.4%). In contrast, prices of long-distance transport tickets fell markedly (-16.0%). This was largely due to the reduction in value-added tax on long-distance rail tickets from 19% to 7% that took effect at the beginning of the year, while the current cut of the reduced tax rate from 7% to 5% only had a partial effect.
Decreasing prices of heating oil and motor fuels: -1.1% on July 2020
Compared with July 2020, the overall consumer price index fell by 0.1% in August 2020. Energy product prices declined by 0.5%; consumers paid less especially for heating oil (-4.1%) and motor fuels (-0.6%). Food prices (total) fell slightly, too (-0.3%, including vegetables: -2.7%). Price rises were observed, for example, for clothing (+0.9%).
Inflation rate of -0.2% expected for euro area
In August 2020, the harmonised index of consumer prices for Germany (HICP), which is calculated for international comparisons, was 0.1% below the level of August 2019. According to the Eurostat early estimate of 1 September 2020, the inflation rate in the euro area was -0.2%. The HICP will next be released on 16 September 2020 (https://ec.europa.eu/eurostat/de/news/release-calendar). For HICP results of all European countries please go to the Eurostat pages.
Methodological note:
Since July 2020, the inflation rate has been affected by the reduction in value added tax being passed on to consumers. This can have an impact on year-on-year price changes (total) and in different ways on individual product groups. See press press release no. 215 of 15 June 2020 and no. 305 of 13 August 2020. Consumer price statistics have again been faced with particular challenges due to the temporary reduction in value added tax rates, and especially owing to the different handling of this reduction in the individual shops. When interpreting the results for August 2020, it should be noted that those effects are no longer reflected in the month-on-month comparison.
For more information about the methods used during the corona crisis and the impact on price collection please refer to our Methodological paper.
Crisis Monitor enables comparison between corona crisis and financial/economic crisis
The consumer price index also forms part of the "Crisis Monitor" by means of which the Federal Statistical Office compares the development of major short-term indicators in the corona crisis and the financial and economic crisis of 2008/2009. The Crisis Monitor complements the Corona statistics webpage, which has provided statistical information on the economic and social consequences of the corona pandemic since early April.
German EU Council Presidency
As of 1 July, the Federal Statistical Office will organise the meetings of the Council Working Party on Statistics to be held during Germany’s EU Council Presidency under the chairmanship of its President Dr. Georg Thiel. Information on our activities during the Presidency of the Council of the EU is provided at destatis.de/eu2020.
| Overall index / subindex | Weighting | Index 2015 = 100 | Change on the same period a month earlier | Change on the preceding month |
|---|---|---|---|---|
| in per mill | in per cent | |||
| 1: Results do not include charges. | ||||
| Overall index | 1,000.00 | 106.0 | 0.0 | -0.1 |
| Food and non-alcoholic-beverages | 96.85 | 108.4 | 0.6 | -0.2 |
| Food | 84.87 | 109.1 | 0.7 | -0.3 |
| Meat and meat products | 18.60 | 114.0 | 4.8 | -0.1 |
| Fruit | 8.88 | 113.0 | 5.8 | -0.4 |
| Vegetables | 11.08 | 104.0 | -6.8 | -2.7 |
| Alcoholic beverages and tobacco | 37.77 | 114.5 | 3.1 | -0.1 |
| Clothing and footwear | 45.34 | 98.2 | -1.3 | 0.5 |
| Housing, water, electricity, gas and other fuels | 324.70 | 105.3 | 0.3 | -0.1 |
| Net rent exclusive of heating expenses | 196.32 | 107.2 | 1.4 | 0.1 |
| Household energy | 68.82 | 98.4 | -3.7 | -0.4 |
| Electricity | 25.92 | 109.4 | 2.1 | 0.1 |
| Gas 1 | 13.53 | 95.3 | -0.7 | 0.2 |
| Heating oil 1 | 7.01 | 75.0 | -32.7 | -4.1 |
| Furniture, lighting equipment, appliances and other household equipment | 50.04 | 102.0 | -0.3 | 0.3 |
| Health | 46.13 | 105.2 | 0.6 | 0.0 |
| Transport | 129.05 | 104.1 | -2.7 | -0.1 |
| Motor fuels | 35.01 | 92.8 | -11.3 | -0.6 |
| Supergrade petrol | 25.66 | 92.3 | -11.3 | -0.9 |
| Diesel fuel | 8.64 | 94.1 | -11.8 | 0.0 |
| Communication | 26.72 | 93.1 | -2.7 | -0.2 |
| Recreation and culture | 113.36 | 109.7 | -0.7 | -1.2 |
| Package holidays | 26.62 | 127.6 | -3.8 | -4.8 |
| Education | 9.02 | 101.5 | -0.2 | -0.9 |
| Restaurant and accommodation services | 46.77 | 112.4 | 2.0 | 0.2 |
| Miscellaneous goods and services | 74.25 | 108.0 | 1.7 | 0.1 |
| Overall index | ||||
| Excluding food and energy | 811.30 | 106.9 | 0.7 | -0.1 |
| Excluding energy (household energy and motor fuels) | 896.17 | 107.1 | 0.7 | -0.1 |
| Excluding heating oil and motor fuels | 957.98 | 106.7 | 0.6 | -0.1 |
| Goods | 468.16 | 102.9 | -1.3 | -0.1 |
| Non-durable consumer goods | 297.54 | 104.4 | -1.6 | -0.3 |
| Energy | 103.83 | 96.5 | -6.3 | -0.5 |
| Services | 531.84 | 108.6 | 1.0 | -0.3 |
Detailed data and long time series of consumer price statistics can also be found in the Genesis Online database in tables 61111-0004 and 61111-0006 (consumer price index) as well as in tables 61121-0002 and 61121-0004 (harmonised consumer price index).
