You are here: Home - Investing - Experienced Investor - News -

Germany slips into deflation as eurozone figures worsen

Written by:
Germany has fallen in to deflation for the first time in more than five years, with eurozone figures falling to the equal lowest level on record.

Inflation fell below zero for the first time since October 2009, according to preliminary estimates from statistics agency Destatis, as prices dropped by 0.3 per cent in the year to January.

Analysts had expected deflation – but not at this pace, according to the Telegraph.

A poll suggested that prices would fall by 0.2 per cent in the period. Final results for January will be published on 12 February. Separate eurozone-wide figures published later this morning showed prices fell by 0.6 per cent in the year to January, worse than the 0.5 per cent slide that had been expected and the lowest since July 2009. It follows a 0.2 per cent drop in December.

Falling oil prices has reduced inflation pressures across the globe, including in Germany. But core inflation, which strips out energy and food, also likely fell, economists said.

The negative inflation figures from Germany made it the latest eurozone country to slip into deflation. Bank of England governor Mark Carney warned earlier this month a period of deflation in the UK is possible after price growth fell to 0.5 per cent in December.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Procrasti-Nation; Infographic

UK peer-to-peer lender Ratesetter has published an extensive report into the procrastination habits of the British public. The findings are...