By Reuters Staff
BERLIN, July 29 (Reuters) – Germanys annual consumer price inflation accelerated by more than expected in July, rising further above the European Central Banks target of close to but below 2%, the Federal Statistics Office said on Thursday.
Consumer prices, harmonised to make them comparable with inflation data from other European Union countries, rose by 3.1% in July, compared with 2.1% in June. The July figure compared with a Reuters consensus forecast for a reading of 2.9%.
A base effect due to the corona(virus)-induced reduction in VAT rates in July 2020 is, in particular, responsible for the further increase in the inflation rate in July 2021, the Statistics Office said in a statement. Since January 2021, VAT rates for almost all goods and services have been back at the previous level. (Writing by Paul Carrel Editing by Madeline Chambers)read more
German inflation jumps to 3.1% – Reuters
