German Government Moves Help Curb Inflation In June

Berlin, Government measures to cut fuel prices at the pump and subsidies rail fares helped curb German inflation to 7.6% on the year in June, down from 7.9% in May, the Federal Statistical Office said today.

Whereas the energy and food components had been driving prices up through the end of May, substantial cuts in the taxes imposed on petrol and diesel and a standard ticket price of €9 ($9.50) for most rail travel helped dampen increases in June.

Comparing June prices with those a year ago, energy was up 38.0% and food was up 12.7%.

The tax cut on fuels that went into effect at the beginning of June and will remain in place to the end of August amount to 35.2 cents per litre on the usual grade of petrol sold and 16.7 cents on diesel.

Prices at the pump for both soared past €2.10 in March, but have since come back down to around €1.80 for petrol and around €2.00 for diesel.

The €9 rail ticket applies to all commuter and regional routes but not to intercity express services.

Source: Oman News Agency