Inflation in Germany and Italy weak in November despite oil price impact wearing off
Inflation in Germany, the Eurozone’s biggest economy, and Italy was weak in November according to official estimates released today.
However, there is evidence the effect of cheap oil is beginning to wear off. Germany’s inflation ticked up to an annual rate of 0.4 per cent in November.
Energy prices were down 7.5 per cent compared with the November last year, while food prices were up 2.3 per cent, the data from Germany’s statistical office Destatis shows.
The rate of decline of energy prices is slowing, suggesting the impact of last years’ collapse in oil prices is wearing off.
The measure that is used by the European Central Bank, which tries keep Eurozone inflation at two per cent, was only 0.3 per cent, but marks a higher rate than October’s 0.1 per cent.
In Italy, inflation dipped to 0.1 per cent in November from 0.3 per cent in October, numbers from Italian statistical office Istat reveal. Prices at hotels and restaurants were the main reason for the drop, Istat said, while energy prices put upward pressure on inflation as the rate of decline slowed.