Inflation slowed in three German states and held steady in three others in November.
Inflation rates declined in Hesse, Brandenburg and Baden- Wuerttemberg and were unchanged in North Rhine-Westphalia, Saxony and Bavaria, reports from the states’ statistics of offices showed. In the month, consumer prices fell in all six states.
Economists predict that pan-German inflation, calculated using a harmonized European Union method, will slow to 2 percent from 2.1 percent in October, according to the median of 23 estimates in a Bloomberg News survey. The Federal Statistics Office in Wiesbaden is due to publish that report, based on data from the six states, at 2 p.m. today.
Oil prices have declined about 11 percent this year as a cooling global economy curbs demand. Europe’s sovereign debt crisis is also damping German economic growth, leaving companies with less room to raise prices. The Organization for Economic Cooperation and Development yesterday cut its forecasts for German expansion to 0.9 percent this year and 0.6 percent in 2013.
“Germany is in the enviable position of having neither an inflation nor a deflation problem,” said Carsten Brzeski, an economist at ING Group in Brussels. “Inflation will probably stay around 2 percent for the foreseeable future.”
The European Central Bank aims to keep inflation in the 17- nation euro region just below 2 percent. The euro-area rate will decline to 2.4 percent this month from 2.5 percent in October, according to another survey of economists. That report is due on Nov. 30.
Monthly Yearly Change Change Saxony -0.1% (0.1%) 2.0% (2.0%) Hesse -0.2% (0.0%) 1.8% (2.0%) Bavaria -0.1% (0.1%) 2.1% (2.1%) Brandenburg -0.2% (0.1%) 1.5% (1.9%) North Rhine-Westphalia -0.1% (0.0%) 1.9% (1.9%) Baden-Wuerttemberg -0.2% (0.0%) 1.5% (1.7%)
To contact the reporter on this story: Gabi Thesing in London at firstname.lastname@example.org
To contact the editor responsible for this story: Craig Stirling at email@example.com