German inflation holds steady in November

A worker moves some tomatoes at the wholesale fruits and vegetables market in Hamburg Germany March 13, 2018. — Reuters pic
A worker moves some tomatoes at the wholesale fruits and vegetables market in Hamburg Germany March 13, 2018. — Reuters pic

BERLIN, Nov 28 — German inflation remained stuck at the low level of 1.1 per cent in November, preliminary data showed today, despite fresh stimulus from the European Central Bank to stoke price growth.

Consumer prices rose 1.1 per cent year-on-year this month, the same rate as in October, federal statistics authority Destatis said in a statement.

The picture was somewhat brighter when looking at the ECB’s preferred yardstick — the Harmonised Index of Consumer Prices — which recorded a November inflation rate of 1.2 per cent, up from 0.9 per cent in October.

Analysts had been expecting a slight pick-up in inflation after the ECB in September unleashed a fresh volley of easy money policies to tackle a weaker economic outlook in the 19-nation eurozone.

As well as cutting a key interest rate deeper into negative territory and loosening conditions for cheap credit to banks, the ECB restarted a massive monthly bond-buying programme.

The measures are aimed at encouraging spending and investment to drive up growth and bring the ECB closer to its inflation target of just under two per cent.

Despite the efforts, price increases have been stubbornly low in Europe’s top economy in recent months as it is buffeted by trade tensions, Brexit uncertainty and a slowdown in global growth. — AFP

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