German inflation falls surprisingly sharply to 8.6 percent

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. There has never been a greater plus in reunified Germany. The old record for West Germany of 7.6 percent from 1951 was also exceeded.

The new figures are likely to fuel the debate as to whether inflation has peaked. Many economists assume that inflation will weaken over the course of the year, but that price pressure will remain high. They therefore expect further rate hikes.