01.Dec .2022 13:30

German inflation slows to 10%

German inflation slows to 10%
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German inflation unexpectedly slowed to 10% in November, preliminary data showed.

This comes after record inflation levels of 10.4%, year-on-year, for October.

Energy price pressure easing

The new data is a signal that sky-high energy prices in Europe's biggest economy have begun to ease after months of increases in the wake of Russia's invasion of Ukraine and this was reflected in the slight drop in inflation.

Despite the slowing down of price increases, Destatis noted the cost of energy was still 38.4% higher than a year ago.

The German government has unveiled an energy fund worth €200 billion ($207 billion) to help protects households and businesses from the impact of soaring prices. The federal government has also raced to diversify supplies after Russia cut gas deliveries.

Tuesday's data offered a "very small breather" for a country bracing itself for a difficult winter, said ING bank economist Carsten Brzeski.

Last week, Germany's economy recorded a 0.4% growth during the third quarter of the year while consumer confidence also inched up, after a long period of decline.

While some economists saw this as a sign the ongoing recession may not be as bad as initially expected, others warned it could be the calm before the storm, DW reports.