(C) Reuters. FILE PHOTO: Full shelves with fruits are pictured in a supermarket during the spread of the coronavirus disease (COVID-19) in Berlin, Germany, March 17, 2020. REUTERS/Fabrizio Bensch/File Photo
BERLIN (Reuters) – Germany’s annual consumer price inflation accelerated by more than expected in July, rising further above the European Central Bank’s target of close to but below 2%, the Federal Statistics Office said on Thursday.
Consumer prices, harmonised to make them comparable with inflation data from other European Union countries, rose by 3.1% in July, compared with 2.1% in June. The July figure compared with a Reuters consensus forecast for a reading of 2.9%.
“A base effect due to the corona(virus)-induced reduction in VAT rates in July 2020 is, in particular, responsible for the further increase in the inflation rate in July 2021,” the Statistics Office said in a statement. “Since January 2021, VAT rates for almost all goods and services have been back at the previous level.”
German inflation jumps to 3.1%
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