Germany's inflation slows more than forecast to over 2-year low

By Tuba Ongun

ANKARA (AA) – Germany's annual consumer inflation eased more than expected to over a 2-year low with the back of a slowdown in rising food prices and the decrease in energy prices, according to a flash reading released on Wednesday.

Consumer prices rose 3.2% year-on-year in November, the slowest pace since June 2021, the Federal Statistics Office (Destatis) data showed. Economists expect Germany's consumer prices would hike 3.5% year-on-year in November.

The cost of energy plunged by 4.5% from last year in November, accelerating from a 3.2% annual decrease in October.

Food prices, on the other hand, rose 5.5% from a year earlier in the month versus October's yearly increase of 6.1%.

Core inflation, which excludes food and energy prices, came in at 3.8% in November, down from 4.3% in October.

On a monthly basis, Germany's consumer price index dropped 0.4% in November versus the market forecast of a 0.2% decline.