The inflation rate in Germany, measured as the year-on-year change in the consumer price index, is expected to be +3.8% in July 2021. Based on the results available so far, the Federal Statistical Office (Destatis) also reports that consumer prices are expected to rise by +0.9% on June 2021. {table} The further increase of the inflation rate in July is caused, in particular, by a base effect: the value-added tax rates were temporarily reduced in July 2020 on account of the coronavirus crisis. Since January 2021, the VAT rates of nearly all goods and services have been back to their previous levels. It is very ... (full story)