Consumer prices in Germany rose so slowly in September due to falling energy costs as they had been one and a half years ago.
According to the Federal Statistical Office, the rate was last lower in February 2018 at 1.1 percent. Compared with August 2019, consumer prices remained unchanged in September. For household energy and fuels, people in Germany had to pay an average of 1.1 percent less than in the same month last year.
Food prices also weakened. They gained 1.3 percent. In August, the increase was still 2.7 percent.
The inflation rate is an important indicator of the monetary policy of the European Central Bank (ECB). For the entire eurozone and its 19 countries, the central bank is aiming for an annual inflation rate of just under 2.0 percent in the medium term - far enough from the zero mark. Because prices that are consistently low or wide-spread could mislead businesses and consumers to postpone investment. That can slow down the economy.
