German inflation unchanged in November, weaker than expected

[November 29, 2016]  BERLIN (Reuters) - German annual inflation remained unchanged unexpectedly in November, data showed on Tuesday, in a sign that price pressures are still weak in Europe's biggest economy despite an economic upturn spurred by the ECB's ultra-loose monetary policy.

A customer weighs vegetable at a self service point of sale terminal in a store in Berlin, Germany August 26, 2016. REUTERS/Stefanie Loos

German consumer prices, harmonized to compare with other European countries (HICP), rose by 0.7 percent on the year, the Federal Statistics Office said.

This was the same inflation rate as in October, which marked a 2-year high, and it came in weaker than a Reuters consensus forecast for a rise to 0.8 percent.

On a non-harmonized basis, annual inflation also remained unchanged at 0.8 percent in November, the office said.

Energy prices remained the main drag on the headline figure, falling more strongly than in the previous month, a breakdown of the non-harmonized data showed. Rising costs for food and rents were the most important drivers of inflation.

(Reporting by Michael Nienaber)

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