W. Germany Reports ‘Negative Inflation’

The weak dollar and the slide in oil prices pushed West Germany’s cost of living in April to slightly below its level 12 months earlier, producing the first year-to-year drop since 1959, figures published Wednesday showed.

The Federal Statistics Office reported that living costs last month were 0.2% down from April, 1985, making West Germany the only major industrialized country with “negative inflation.” The drop was revised from an estimated 0.1% fall announced 10 days ago.

Economists say the inflation drop has been largely because of the weaker dollar, which reduces the cost of foreign goods, and the tumble in oil prices. By contrast, domestically determined prices, such as wage costs, have been rising.