2020.11.3014:22:00UTC+00German Consumer Prices Fall For Third Month

Germany's consumer prices decreased for a third straight month in November, preliminary estimates from Destatis showed on Monday. The consumer price index fell 0.3 percent year-on-year following declines of 0.2 percent each in both September and October. Economists had forecast a 0.1 percent fall. The inflation rate has been influenced, among other factors, by the value added tax reduction effective as of July 1 this year, the statistical office said. Energy prices fell 7.7 percent after a 6.8 percent drop in the previous month. Food prices grew 1.4 percent, same as in October. Service costs increased 1.1 percent, broadly the same as in the previous month. Compared to the previous month, the CPI decreased 0.8 percent in November after a 0.1 percent gain in October. Economists had expected a 0.7 percent fall. The harmonized index of consumer prices, which is meant for EU comparison, declined 0.7 percent year-on-year in November after a 0.5 percent fall in the previous month. Economists were looking for a 0.5 percent decrease. On a month-on-month basis, the HICP decreased 1 percent after remaining unchanged in October. Economists had predicted a 0.8 percent slump. Destatis is set to release the final results for November CPI on December 11.