German Consumer Prices Rose Strongly in July in Line With Forecasts

By Maria Martinez

German consumer prices climbed in July, confirming preliminary data, the German statistics office Destatis said Wednesday.

Consumer prices rose 3.8% on year measured by national standards, in line with the forecast by economists polled by The Wall Street Journal. They rose 3.1% on year by European Union-harmonized standards, also as forecast.

The increase in the inflation rate is mainly due to the base effect of a temporary value-added-tax cut in the previous year, the statistics office said.

Consumer prices rose 0.9% on month by national standards, in line with the forecast of economists polled by The Wall Street Journal. Prices increased 0.5% by EU-harmonized standards, in line with forecasts.

The price-collection problems caused by the pandemic in the previous months were less severe in July, as the shop-based retail business and food service and accommodation establishments were largely reopened or could offer their services again, Destatis said.

Write to Maria Martinez at maria.martinez@wsj.com




      

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