Germany's Inflation Rises to 2.2% in November, Driven by Food and Services

The annual inflation rate surpasses 2% for the first time since July, while energy costs decline and core inflation remains elevated.

Germany's inflation rate increased to 2.2% in November, up from 2.0% in October, according to preliminary data from the Federal Statistical Office.
Food and services, including butter and insurance premiums, were the primary contributors to the inflation rise, with butter prices up over 40% year-on-year.
Energy prices, including fuel and heating, dropped 3.7% compared to November 2023, helping to moderate the overall inflation rate.
Economists predict inflation will remain slightly elevated into early 2025 due to base effects, wage growth, and specific price adjustments like private health insurance tariffs.
The European Central Bank is expected to consider modest interest rate cuts in December to support the weak economy, with inflation in the Eurozone also trending toward the 2% target.