ZURICH (MaceNews) – Consumer prices in Germany increased 5.2 percent in November from a year ago, up from 4.5 percent in October and exceeding economists’ expectations, according to preliminary data released by the Federal Statistics Office Destatis.
Prices were driven higher by a 22.1 percent annual increase in energy costs, but Destatis also noted a basis effect at work because of low prices during 2020. This was due in particular to the temporary reduction in the value added tax and the decline in petroleum products.
Economists had expected inflation to come in at +5.0 percent according to the median of an Econoday survey of economists’ forecasts.In an interview earlier today with Germany’s ZDF broadcaster, ECB Governing council member Isabel Schnabel said forecasts show inflation as having peaked in November which forecasts showing it will decline further over the coming year.
Schnabel also indicated the same basis effect was at work in prices, and even in the face of high inflation currently, the ECB will act only if it is sustained. That is currently not the case and “inflation won’t continue at the same pace.”
Prices for goods rose 7.9 percent in November from a year ago, while those for services were up 2.8 percent by comparison.
On a harmonized basis, prices rose 6.0 percent from a year ago, Destatis said.
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