German Prices Register 1st Decline Since 1987

German consumer prices fell in annual terms for the first time in over 22 years in July, amid collapsing energy prices and the global recession, the Fed Statistics Office reported. Prices fell 0.1% from their level in June, & 0.6% from July 2008, it said. The data may usher in what European Central Bank officials & analysts expect to be a brief period of deflation in Germany, & across the euro zone in general. German prices last fell in year-to-year terms in '87. Then, as now, sharp fall in the price of energy was largely responsible. Crude oil prices peaked at over $147 a barrel in the summer of 2008, & have more than halved since then. Vehicle-fuel prices at the pump have fallen by between 19.6% & 20.7% in the last 12 months, Destatis said. The data also reflect the unwinding of a spike in global food prices in late 2007 & 08. Prices for various food groups were 1.2% & 3.3% lower than in July 08. In contrast with 1987, the German economy is now experiencing a prolonged & painful slump. The influential DIW research institute, half a dozen regularly advising the gov