Inflation is weakening somewhat

Inflation was 2.3 percent in June, 0.2 points less than in May.

According to the Federal Statistical Office, there are several reasons for this - several factors coincide.

Wiesbaden - The rise in prices in Germany slowed somewhat in June.

Consumer prices were 2.3 percent above the level of the same month last year, as the Federal Statistical Office announced on Tuesday based on preliminary data.

In May, an annual inflation rate of 2.5 percent was measured in Europe's largest economy.

That was the highest level in almost ten years.

Inflation continues to be fueled primarily by the rise in energy prices, which rose by 9.4 percent compared to June 2020.

With the economic recovery, the demand for crude oil increases worldwide, which drives the price up.

In addition, since the beginning of 2021, a tax of 25 euros per tonne of carbon dioxide (CO2) emitted has been due in Germany, which is produced when diesel, petrol, heating oil and natural gas are burned.

After temporarily negative inflation rates in the second half of 2020, inflation in Germany has increased since the beginning of the current year.

In March the rate was 1.7 percent, in April it was 2.0 percent and in May 2.5 percent.

It also plays a role that the VAT, which was lowered for half a year in the Corona crisis, has been back to its old level since January.

From May to June 2021, consumer prices rose by 0.4 percent, according to preliminary information from the Wiesbaden authority. dpa