Lowest inflation rate observed since April 2021’s figures
Price inflation in Rhineland-Palatinate dropped to 2.1% in August, its lowest since April 2021, driven largely by an 8% reduction in mineral oil product prices and a 5.3% decrease in electricity costs. However, district heating prices surged by 35.8%, and food prices rose by 2%, with a notable 17.8% increase in edible oil and fats due to Southern Europe’s olive oil crop failures.
Price inflation in Rhineland-Palatinate reached its lowest point in more than three years in August, as per the State Statistical Office in Bad Ems. This month, the price inflation rate was recorded at 2.1%, marking the lowest figure since April 2021. The figure was at a higher 2.6% in June.
Energy prices played a significant role in taming inflation in August, according to analysts. The price of mineral oil products saw a decrease of 8% compared to the previous year. This decrease is likely due to improved crude oil prices and a robust Euro against the US Dollar, according to the statement. Consumers managed to save 5.3% on electricity bills compared to a year ago. However, the cost of district heating increased drastically by 35.8%.
Food prices were 2% higher than a year ago in August. There was a significant 17.8% increase in edible oil and fats in particular. Analysts attribute this spike to substantial price hikes in olive oil as a result of crop failures in Southern Europe. The core inflation rate, which disregards food and energy prices, saw a slight decrease in August. It stood at 2.8%, down from 3.1% in July.
The decrease in energy prices, including mineral oil products and electricity bills, significantly contributed to the taming of inflation in August. Despite this, food prices experienced a 2% increase, primarily due to a substantial 17.8% rise in edible oil and fats, attributable to crop failures and price hikes in olive oil.
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