German Inflation Steady At 2.3% In November

(RTTNews) - Germany's consumer price inflation was stable in November and the core figure eased, but the EU measure of price growth accelerated more than expected to its highest level in nine months, preliminary data from the statistical office Destatis showed on Friday.

The consumer price index rose 2.3 percent year-on-year, same as in October. Economists had expected the inflation rate to climb to 2.4 percent.

The core inflation, which excludes prices of food and energy, slowed to a three-month low of 2.7 percent from 2.8 percent. Food inflation slowed slightly to 1.2 percent from 1.3 percent and energy prices continued to decline, down 0.1 percent in November. Services inflation was steady at 3.5 percent. Goods price growth eased to 1.1 percent from 1.2 percent.

The CPI decreased 0.2 percent from October, when prices rose 0.3 percent. Economists were looking for a 0.3 percent fall.

The harmonized index of consumer prices or HICP, which is used for EU comparison purposes, rose 2.6 percent year-on-year following a 2.3 percent increase in October. Economists had forecast 2.4 percent inflation. The latest HICP inflation rate was the strongest since February, when it was at the same level.

The HICP was 0.5 percent lower from October, when it rose 0.3 percent.

ING economist Carsten Brzeski said German headline inflation should move towards 2% at the turn of the year before reaccelerating again, due to base effects. That said, German inflation risks to the outlook in both directions are higher than normal, the economist noted.

"This is why today's inflation data will hardly have any impact on the European Central Bank meeting in December," Brzeski said. "If anything, it strengthens the point of those at the ECB arguing against additional rate cuts."

Destatis is set to release the detailed data for November CPI on December 12 and the next ECB policy decision is due on December 18.