Germany: Inflation eases slightly in November
November 28, 2011
In November, consumer prices remained unchanged over the previous month, according to a preliminary flash estimate released by the Federal Statistics Institute (Destatis). The monthly reading followed the flat figure observed in October and was in line with market expectations. Annual inflation inched down from 2.5% in October to 2.4% in November. Inflation is thus slowly coming down from the three-year high of 2.6% reached in September this year. According to the Institute, inflation in November was driven by higher prices for household energy, particularly for heating oil and gas. At the current level, inflation continues to hover above the European Central Bank's inflation target of ?below but close to 2%.? HICP inflation dropped from 2.9% in October to 2.8% in November. A complete and more detailed inflation data set will be published on 9 December. The Bundesbank expects inflation to average 2.5% this year, before moderating to 1.8% in 2012.
Author: Ricardo Aceves, Senior Economist