2023.12.0809:25:00UTC+00German Inflation At 29-Month Low

Germany's consumer price inflation eased to the lowest level in nearly two and a half years in November, as estimated, final data from Destatis showed on Friday.

The consumer price index registered an annual increase of 3.2 percent in November, following a 3.8 percent rise in October. The last time inflation was lower in June 2021.

The statistical office confirmed the flash estimate published on November 29.

Energy product prices decreased 4.5 percent annually. The fall largely reflects high level of energy prices in 2022, a year marked by war and crisis.

The year-on-year increase in food prices also continued to slow, but was markedly higher than overall inflation. Food prices were up 5.5 percent.

Excluding food and energy prices, core inflation fell below the four percent mark for the first time since August 2022. Core inflation came in at 3.8 percent.

Goods prices moved up 3.0 percent annually. At the same time, services cost advanced 3.4 percent.

On a monthly basis, consumer prices slid 0.4 percent, as initially estimated. Major reasons for the decrease were seasonal reductions of package holiday prices and a marked fall in energy prices.

Inflation, based on the harmonized index of consumer prices, eased to 2.3 percent in November from 3.0 percent a month ago.

Month-on-month, the HICP dropped 0.7 percent, following a 0.2 percent fall in October. Both monthly and annual rates matched the provisional estimate.