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GERMANY

Prices fall for the first time in 22 years

Text by: NEWS WIRES
1 min

The German economy has entered deflation for the first time since March 1987.Government statistics projected a 0.6 percent decline in prices of goods and services compared to 2008.

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AFP - Germany entered into deflation for the first time in 22 years in July, government statistics showed Wednesday, with a projected 0.6-percent decline in prices compared to one year ago.

The Federal Statistics Office cited the figure based on data compiled from six of Germany's 16 states. It compared to a 0.1-percent year-on-year rise in prices in June.

The office said in a statement that the last time the price level for goods and services declined in Germany was in March 1987, when it fell 0.3 percent.

The inflation rate fluctuated between zero percent and -1.0 percent over the course of the year between April 1986 and April 1987.

"At that time, as now, the reason lay in a sharp decline in prices for heating oil and fuel compared to the year before, which reached a record high in July 2008," the statement said.

Consumer prices fell 0.1 percent this month from June.

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