German inflation revised up but risks limited

German EU-harmonised annual inflation (HICP) for November was revised up today.

German EU-harmonised annual inflation (HICP) for November was revised up today.

Final Federal Statistics Office data showed the measure rising by 2 per cent year-on-year rather than the originally reported 1.8 per cent.

In October the index rose 2.2 per cent on the year. But analysts said the risk of higher euro zone inflation was limited as energy prices had eased.

"The fact is, inflation has come down significantly from highs earlier in the year thanks to the drop in energy prices," said DZ Bank economist Mr Bernd Weidensteiner.

READ MORE

"If oil prices remain more or less stable, we should see euro zone inflation nip below two percent in the months ahead."

SEB economist Mr Klaus Schruefer agreed, saying the strong euro had also helped provide price stability. He did not expect a 2.2 per cent estimate for annual euro zone inflation in November from Eurostat, the EU's statistics office, to be revised up .

French EU-harmonised inflation rose an annual 2.2 per cent in November, according to preliminary data issued today, down from 2.3 per cent in October after prices were unchanged month-on-month.