Germany: Exports and Inflation Revised Down

According to NTCResearch:

Inflation in Germany rose less than previously thought in May, the Federal Statistics Office reported on Thursday. Germany’s harmonised index of consumer prices rose 0.2 percent month-on-month and 1.4 percent year on year, compared with initially reported rates of 0.3 percent and 1.5 percent, the Office said. Meanwhile, it was revealed today that Germany?s trade surplus narrowed in April as imports surged. After accounting for expected seasonal factors, the surplus declined from 14.7 billion euros to 12.6 billion. The smaller surplus reflected a 0.4 percent fall in exports and a 3.8 percent jump in imports, the data showed.

The downward drift in inflation needs careful monitoring. I’ve got a deflation alert call out on Germany remember. If Germany goes through the inflation wall, then the proverbial s*** really will hit the fan, since I can’t see the ECB doing non-conventional monetary policy. Come to think of it, maybe that’s what the meeting with Fels was all about.

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About Edward Hugh

Edward 'the bonobo is a Catalan economist of British extraction. After being born, brought-up and educated in the United Kingdom, Edward subsequently settled in Barcelona where he has now lived for over 15 years. As a consequence Edward considers himself to be "Catalan by adoption". He has also to some extent been "adopted by Catalonia", since throughout the current economic crisis he has been a constant voice on TV, radio and in the press arguing in favor of the need for some kind of internal devaluation if Spain wants to stay inside the Euro. By inclination he is a macro economist, but his obsession with trying to understand the economic impact of demographic changes has often taken him far from home, off and away from the more tranquil and placid pastures of the dismal science, into the bracken and thicket of demography, anthropology, biology, sociology and systems theory. All of which has lead him to ask himself whether Thomas Wolfe was not in fact right when he asserted that the fact of the matter is "you can never go home again".

4 thoughts on “Germany: Exports and Inflation Revised Down

  1. If you want some anecdotal evidence, then it might interest you that the prices for haircuts have fallen about 50% this year.

    But I taken the rise in imports as a good sign.

  2. The price of haircuts has fallen 50% in a year? Wow.

    Can you give a little more info? If it’s your own hairdresser, that’s fine. Berlin? Hamburg? Munich?

    But if you have a web reference? or an explanation (the polish hairdresser!)? that would be even better.

  3. I’ve change hairdressers for the saving. I customarily payed 20€ tip included. Now it cost 10€ (9 + tip). I’ve seen advertisments in Munich’s city center for as little as 7€.
    It is not the case that the old shops have cut prices, but there are new shops which start out with low prices.

  4. Same here in Hamburg. My wife now goes to a hairdresser that takes 10 Euros per service (i.e 10 Euros for cutting, 10 for dyeing etc.)

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