FRANKFURT (Germany), Nov 29 (AFP): German inflation slowed further in November, preliminary data showed Wednesday, offering a glimmer of hope for Europe's biggest economy as it struggles through a period of weakness.
Consumer prices rose 3.2 percent year-on-year, down from a reading of 3.8 percent the previous month, according to federal statistics agency Destatis.
This was the lowest level for inflation since June 2021.
It was a steeper drop than expected by analysts surveyed by financial data firm FactSet, who predicted a reading of 3.4 percent.
A heavy year-on-year drop in energy prices "had a particularly dampening effect on the rate of inflation", Destatis said.
Food prices also did not rise as much compared to the same month last year, it said.
Core inflation -- excluding volatile food and energy prices -- slowed to 3.8 percent from 4.3 percent in October.
Consumer prices in Germany started marching higher in 2021 due to supply chain problems as the global economy emerged from the coronavirus pandemic.
Costs surged after Moscow invaded Ukraine in February 2022 and Russia slashed crucial gas exports -- a hammer blow for Germany's crucial industrial sector, which had come to rely on Russian energy.
Inflation peaked in Germany towards the end of last year and has been easing further in recent months as economic activity slows and a series of European Central Bank (ECB) interest rate hikes take their toll.
But the indicator remains above the ECB's two-percent target. While the central bank has signalled its current hiking cycle could be at an end, officials say current rate levels will be maintained for some time.
German inflation eases further in November
FE Team | Published: November 30, 2023 00:20:48
German inflation eases further in November
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