The Federal Statistical Office published a preliminary estimate of November inflation. According to the national methodology, prices rose by 5.2 per cent year-on-year, and by an even higher 6 per cent according to the Eurostat methodology.
The largest year-on-year price increase was for energy, which rose by 22.1 %. In April, the rate was about half that. Food prices rose by 4.5 per cent compared to November last year. Goods rose by almost seven per cent and services by 2.8 per cent. On a month-on-month basis, consumer prices in Germany rose by 0.3 per cent, but fell by 0.2 per cent according to the national methodology, the Federal Statistical Office said.
Experts said accelerating inflation in Germany could lead to a turn of the European Central Bank‘s monetary policy rudder. While it follows inflation trends for the eurozone as a whole, Germany is Europe’s largest economy. Therefore, it is likely that the current data could have an impact on the decision-making process regarding possible changes to monetary policy instruments. The annual inflation rate in the euro area reached 4.4 percent in October, and Eurostat will publish November figures on Tuesday afternoon.