By Maria Martinez
German consumer prices rose strongly in July, according to preliminary data released by the German statistics office Destatis on Thursday.
Consumer prices rose 3.8% on year measured by national standards, more than the 3.3% forecasts by economists polled by The Wall Street Journal. They rose 3.1% on year by European Union-harmonized standards, slightly above the 3.0% forecast of economists polled by The Wall Street Journal.
The increase in the inflation rate is mainly due to the base effect of a temporary VAT cut in the previous year, the statistics office said.
Consumer prices rose 0.9% on month by national standards, beating the 0.5% forecasts 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.
Final results will be released on August 11.
Write to Maria Martinez at firstname.lastname@example.org
(END) Dow Jones Newswires