German inflation hits
three-year high in December, good news for ECB
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[January 03, 2017]
BERLIN (Reuters) - German
inflation rose more than expected in December, hitting
the highest level in more than three years, preliminary
data showed on Tuesday, a welcome sign for the European
Central Bank that price pressures in Europe's biggest
economy are pushing up.
A woman checks vegetables at the Biocompany organic
supermarket in Berlin, January 31, 2013. REUTERS/Fabrizio
German consumer prices, harmonized to compare with other
European countries (HICP), rose by 1.7 percent on the year after
an increase of 0.7 percent in November, the Federal Statistics
This was the highest annual inflation rate since July 2013 and
stronger than a Reuters consensus forecast of 1.3 percent.
On a non-harmonized basis, German annual inflation picked up to
1.7 percent after 0.8 percent in November.
Rising energy prices and higher food costs were the strongest
drivers behind the overall increase, a breakdown of the
non-harmonized data showed.
A strong recovery in German inflation would give conservatives
like Bundesbank's President and ECB rate-setter Jens Weidmann
more scope to argue for winding down the ECB's bond-buying
program more quickly.
(Reporting by Michael Nienaber; Editing by Joseph Nasr)
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