Germany’s inflation drops more than anticipated to a level below two years

The preliminary data indicates a 0.4% reduction in the consumer price index from a month earlier.

According to a flash estimate released on Wednesday, Germany’s annual consumer inflation dropped more than anticipated to surpass a two-year low on the strength of a pause in growing food prices and a decline in energy prices.

The Federal Statistical Office (Destatis) released data in November that indicated consumer prices increased 3.2% year over year, which was the smallest rate since June 2021. November consumer prices in Germany are predicted by economists to increase by 3.5% year over year.

After declining by 3.2% annually in October, the cost of energy fell by 4.5% in November compared to the same month the previous year.

In contrast, food costs increased 5.5% in October compared to a 6.1% annual increase in October.

Core inflation, which deducts energy and food costs, decreased from 4.3% in October to 3.8% in November.

Germany’s consumer price index fell 0.4% on a monthly basis in November, which was less than the 0.2% reduction predicted by the market.