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Germany Inflation Holds at 2.3% in November as Services Keep Pressure On

Stubborn service-sector costs keep core inflation at 2.7%, above the ECB's 2% goal.

Overview

  • Destatis confirmed consumer prices rose 2.3% year over year in November, with the index down 0.2% from October on seasonal drops in airfares and package tours.
  • Service prices increased 3.5% from a year earlier, driven by rail fares up 11.9% and higher costs for package holidays and social care.
  • Energy was 0.1% cheaper than a year ago as electricity fell 1.5% and district heating 0.7%, while motor fuels rose 1.6% and heating oil 2.4%.
  • Food inflation eased to 1.2% year over year, with coffee up 21.1% and chocolate up 19.4% offset by a 22.0% drop in butter prices.
  • Germany’s harmonised index (HICP) stood at 2.6% year over year and fell 0.5% month over month, underscoring inflation above the euro-area target.