High inflation is weighing on consumers.
(Photo: Getty Images; Per-Anders Pettersson)
Frankfurt Inflation in Germany surprisingly eased in November. Consumer prices rose by an average of 10.0 percent compared to the same month last year, as the Federal Statistical Office announced on Tuesday. In October, the inflation rate was 10.4 percent, its highest level since 1951. Experts polled by Reuters had forecast a rate of 10.3 percent for November.
The new figures will stimulate discussion as to when the price hikes might peak. According to estimates by many economists, this “peak” has already been exceeded in the USA, while the euro area is lagging behind somewhat in terms of development. The November figures for monetary union will be released on Wednesday.
New inflation figures give material for speculation about the monetary policy of the European Central Bank (ECB). It will make its next interest rate decision on December 15th.
The main question is whether it will raise interest rates again by 0.75 percentage points (75 basis points) or only by half a percentage point. The capital markets regularly react to higher-than-expected inflation figures by putting pressure on share and bond prices.
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More: In some federal states, inflation falls below ten percent.