The Federal Statistical Office has just published the consumer prices for the month of May as a preliminary estimate. The final data will be available on June 16. Compared with May 2019, consumer prices will rise by 0.6 percent year-on-year, after +0.9 percent and +1.4 percent in the two previous months. Compared with the previous month, we have even arrived at deflation with -0.1 percent compared with April 2020.
The current data sheet of the statisticians shows it quite clearly. Consumer prices for energy (oil price crash) are falling ever more sharply year-on-year. At -8.5 percent now, after -5.8 percent and -0.9 percent in the previous months. Food prices are still keeping the average away from deflation. They are rising by 4.5 percent year-on-year after +4.8 percent in April. But salvation is at hand for all those who fear real deflation. You can see how the oil price has recovered in recent weeks. Will it take another few weeks and will the year-on-year decline in petrol prices for consumers become less pronounced? Then inflation can also start to rise again cautiously.