In November, the inflation rate in Germany was still 10.0 percent.
(Photo: dpa)
Frankfurt The inflation rate in Germany fell significantly in December compared to the previous month. Consumer prices increased by 8.6 percent compared to the same month last year. This was announced by the Federal Statistical Office on Tuesday based on a preliminary estimate. In November, however, the inflation rate was still 10.0 percent.
Economists polled by the Reuters news agency had forecast a rate of 9.0 percent for December. In 2022 as a whole, prices rose by an average of 7.9 percent – more than they had in decades. In 2021 the increase was still 3.1 percent.
The new figures are likely to fuel the debate as to whether inflation has peaked. However, ECB President Christine Lagarde has recently dampened corresponding hopes for the euro area. She emphasized that rates are likely to rise again in January and February.
Many economists also expect inflationary pressures to remain high in 2023. The European Central Bank (ECB) is therefore facing controversial debates as to the level up to which it will raise interest rates. The further development of interest rates has far-reaching consequences for the capital markets.
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