29.11.202312:46:00UTC+00German Inflation Eases To 3.2%, Lowest In 29 Months

Germany's consumer price inflation eased further in November to the lowest level in nearly two-and-a-half years, provisional data from Destatis showed on Wednesday.

The consumer price index registered an annual increase of 3.2 percent in November, following a 3.8 percent rise in October.

Further, this was the lowest rate since June 2021, when inflation stood at 2.4 percent and was also weaker than economists' forecast of 3.5 percent.

The 4.5 percent annual decline in energy prices had a particularly dampening effect on the rate of inflation in November due to base effects, the agency said.

On a monthly basis, consumer prices dropped 0.4 percent versus an expected fall of 0.2 percent.

Inflation, based on the harmonised index of consumer prices, eased to 2.3 percent in November from 3.0 percent a month ago. Monthly, the HICP fell 0.7 percent.

"The next stage of disinflation will be driven by the ECB's monetary policy tightening," ING economist Carsten Brzeski said.

"The weakening of demand as a result of higher interest rates should lead to actual price drops in the coming months," the economist added.