Germany revises down November inflation rate

Germany's Statistics Office today revised down the country's harmonised inflation rate for November.

Germany's Statistics Office today revised down the country's harmonised inflation rate for November.

German November consumer prices harmonised to compare with other European Union data were revised down to show a decline of 0.5 per cent month-on-month and a rise of 1 per cent year-on-year, the Statistics Office reported.

Preliminary data last month showed a decline of 0.4 per cent on the month and a rise of 1.1 per cent year-on-year.

The downward adjustment may lead to a similar revision for the whole euro zone for the month.

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Mr Klaus Schruefer, an economist at SEB in Frankfurt, said the downward revision in Germany may lower the euro zone inflation rate in November to 2.1 per cent, from a preliminary 2.2 per cent.

Germany accounts for around one-third of the euro zone economy, and Mr Schruefer said that if inflation there was revised down, it could help tip the balance towards a lower euro zone rate.

He said euro zone inflation was likely to pick up again slightly in December, to 2.2 per cent, before falling back below the European Central Bank's 2 per cent ceiling in January.

Germany's national consumer price index for November, which is not used for comparisons with other EU countries, was confirmed to show prices fell 0.4 per cent month-on-month and rose 1.1 per cent year-on-year, the Statistics Office said.