Germany’s CPI inflation confirmed at 2 1/2-year low

Annual consumer price inflation in Germany was confirmed at 3.2% in November, or the lowest rate since June 2021. It has slowed from 3.8% in October.

In monthly terms, German consumer prices decreased 0.4% in November, after registering zero growth in October.

Last month, the main downward pressure came from a notable slowdown in food price increase (5.5% year-on-year versus 6.1% year-on-year in October) and from a further decrease in energy prices (-4.5% YoY versus -3.2% YoY in October).

Annual services inflation moderated to 3.4% in November from 3.9% in October.

Meanwhile, Germany’s annual core CPI inflation, which excludes volatile categories such as food and energy, also slowed in November, to 3.8%. It has been the lowest core inflation since August 2022.

The country’s annual harmonized inflation rate was also confirmed at 2.3% in November.

The Euro was last edging down 0.15% on the day against the US Dollar, with the EUR/USD currency pair trading at 1.0777. The major Forex pair slipped as low as 1.0755 on Thursday to mark its weakest level since November 14th.