Consumer price inflation in Germany rose for a third month in a row, and at a faster than expected pace in December, to its highest level in 11 months led by higher food prices and services costs, though policymakers at the European Central Bank are likely to be less concerned at the recent spike in price pressures and press ahead with another interest rate reduction in the next policy session due at the end of the month.
The consumer price index rose 2.6 percent year-on-year following a 2.2 percent increase in November, preliminary figures from the statistical office Destatis showed on Monday. Economists had forecast a 2.4 percent inflation.
Core inflation that strips out prices of food and energy climbed to 3.1 percent from 3.0 percent.
by Jyotsna V
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