FX.co ★ German Inflation Rises To 4-Month High As Estimated

Germany experienced a significant rise in consumer price inflation to a four-month peak in November, influenced by less favorable energy base effects, according to official data released on Tuesday.

The consumer price index (CPI) saw an annual growth of 2.2% in November, up from a 2.0% increase in October, as reported by Destatis. This figure aligned perfectly with the estimate provided on November 28.

Inflation calculated via the harmonized index of consumer prices (HICP) remained steady at 2.4%, consistent with October's figures and matching the preliminary estimate. On a month-to-month basis, there was a 0.2% decline in consumer prices in November, attributed to seasonal factors, particularly noticeable in the reduced prices of airline tickets and package holidays. The HICP saw a 0.7% decline from the previous month, contrasting with a 0.4% rise in October. Both monthly CPI and HICP figures were consistent with initial estimates.

The data further revealed that energy product prices fell 3.7% compared to the previous year, a deceleration from the 5.5% drop recorded in October. Concurrently, the rate of food inflation decreased to 1.8% from 2.3%, while inflation in services remained steady at 4.0%.

Despite these changes, core inflation, which excludes food and energy, remained high at 3.0% in November.