BERLIN: Annual inflation in Germany remained at its half-year low level in August due to continued decrease of energy prices, official data showed here the other day.
Compared with the same month of previous year, German consumer prices increased by 0.2 percent, the same as in July, said German federal statistical office Destatis.
According to Destatis, the low inflation rate was mainly due to the continued decrease in energy prices which dropped by 7.6 percent year-on-year in August. Food prices rose by 0.8 percent.
European Central Bank (ECB) sets its target of inflation maintenance in the euro zone at below, but close to 2 percent. In August, however, the common currency area’s inflation rate remained unchanged at 0.2 percent, showing that the central bank’s quantitative easing (QE) program which started in March has yet to receive desirable effects.
Last week, ECB decided to keep its interest rates unchanged at record low. Its president Mario Draghi reiterated that the QE program was intended to run until the end of September 2016, but could be extended if necessary.
