Is Germany Drinking Its Way Out of Recession

Is Germany Drinking Its Way Out of Recession.

For the first time in five years, the German economy has moved into reverse.
The German equivalent of the UK’s Office for National Statistics (ONS) is Destastis – the Federal Statistical Office (www.destatis.de).

Official inflation in Germany is December was 0.2%pa but now provisional figures for January suggest consumer prices have fallen by 0.3%, meaning that if confirmed Germany has deflation of -0.1%.

The cause, is the huge fall in oil, which all countries are experiencing.

Comment

If full deflation continues in Germany and across Europe, this is a potential disaster and could bring an economy to a standstill.

Why would you spend today if you can buy your shopping next week cheaper? This is the reality. Hence, the European Central Bank confirming €60bn per month to be printed for Quantitative Easing (watch our video explaining quantitative easing).

Beerflation?

Fair play to the Germans though, news from the Destatis website this today that sales of beer in 2014 were up 1.0% on 2013.

The Federal Statistical Office (Destatis) reports from Wiesbaden that the beer producing and storing establishments in Germany sold 95.6 million hectolitres of beer in 2014. That was an increase of 1.0 million hectolitres (+1.0%) from the previous year. Maybe the Germans will drink there way out of deflation?