Germany Inflation September 2020


Germany: Harmonized prices post largest fall since January 2015 in September

October 14, 2020

Harmonized consumer prices dropped 0.38% from the previous month in September, following August's 0.19% fall. The print reflected price drops for food and alcoholic beverages; housing, water, electricity, gas and other fuels; health; and transport more than offsetting a marked increase in clothing and footwear prices.

Harmonized prices decreased 0.4% year-on-year in September, which followed August’s 0.1% decrease. September's reading marked the largest fall in harmonized prices since January 2015. This is in part due to the reduction in the value added tax, which entered force on 1 July as part of the government’s fiscal response to the Covid-19-induced downturn. Lastly, annual average inflation fell to 0.8% in September (August: 0.9%).

FocusEconomics panelists see harmonized inflation ending 2020 at 0.5%, which is unchanged from the previous month’s forecast. For 2021, our panelists expect harmonized inflation to end the year at 1.4%.


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Germany Inflation Chart

Germany Inflation September 20 20

Note: Annual and monthly variation of consumer price index in %.
Source: Federal Statistics Office (Destatis) and FocusEconomics calculations.

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