Germany’s inflation hits zero percent

May 28th, 2009 - 12:59 am ICT by IANS  

Wiesbaden (Germany), May 27 (DPA) Germany’s consumer price index for May 2009 is expected to show 0.0 percent inflation compared to the same month last year, for the first time since 1987, according to preliminary figures released Wednesday.
The data are based on early results from six federal German states, the Federal Statistical Office reported.

May’s consumer price index dropped one percent compared to April 2009, which in turn represented an increase of 0.7 percent over April last year.

The results are thought to be a consequence of the sharp rise in oil prices during the first half of 2008, which have since dropped off again, counteracting other inflationary factors.

Analysts predict that inflation will sink to negative numbers during the course of the summer, before picking up again towards the end of the year.

Final results for May 2009 are due to be released on June 10.

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