German Inflation Rises at Fastest Pace in Almost 30 Years

By Maria Martinez

German consumer prices rose strongly in November, posting their highest reading since June 1992 and confirming preliminary data, statistics office Destatis said Friday.

Consumer prices rose 5.2% on year measured by national standards, and they rose 6.0% on year by European Union-harmonized standards, both in line with forecasts.

The increase in the inflation rate was caused mainly by base effects due to lower prices in 2020, the statistics office said. In this context, the temporary value-added-tax reduction and the sharp decline in mineral-oil-product prices also had an upward effect on the overall inflation rate, Destatis said.

Additional factors included the introduction of carbon-dioxide pricing in January and pandemic-related effects, such as marked price increases during the stage of economic recovery, the statistics office said.

Consumer prices declined 0.2% on month by national standards and increased 0.3% by EU-harmonized standards, both in line with the forecasts of economists polled by The Wall Street Journal.

Write to Maria Martinez at [e-mail]

(END) Dow Jones Newswires

12-10-21 0223ET