German inflation accelerates beyond expectations in
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[November 29, 2017]
BERLIN (Reuters) - German
inflation accelerated more quickly than expected in November, the
Federal Statistics Office said, as the economy and labor market boomed
-- supported by loose euro zone monetary policy -- and food and fuel
Earlier figures showing rising prices in Germany's regions had already
prompted investors push up German borrowing costs in the expectation
that this would lead the European Central Bank to reduce stimulus.
Strong growth in the prices of energy and food helped lift the inflation
rate to 1.8 percent, ahead of the 1.7 percent expected by analysts
polled by Reuters, and substantially faster than the 1.5 percent price
growth seen in October.
The numbers, harmonized to make them comparable with inflation figures
from other European Union countries, showed prices up 0.3 percent
month-on-month, ahead of the 0.2 percent forecast.
German 10-year government bond yields <DE10YT=TWEB> were 2 basis points
higher at 0.36 percent and most other euro zone bond yields were also
higher by 1-2 basis points on the day.
Figures reported by individual German states' statistics offices showed
food, fuel and transport costs all making strong contributions to
overall price increases. The state readings are not harmonized to
compare with other euro zone countries.
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An employee of an organic supermarket poses for the photographer
with an egg from an organic farm in Berlin February 25, 2013.
REUTERS/Fabrizio Bensch/File Photo
The inflation rate for the entire euro zone, due on Thursday, is expected to
have risen to 1.6 percent in November from 1.4 percent in October, economists
polled by Reuters said.
In Spain, the euro zone's fourth-largest economy, EU-harmonized consumer prices
rose by 1.7 percent year-on-year in November, flash data from the National
Statistics Institute (INE) showed on Wednesday.
This was below a Reuters poll of 1.9 percent and unchanged from October. The
data also showed Spain's national consumer price index rose by 1.6 percent in
November on an annual basis, also unchanged from October.
(Reporting by Thomas Escritt; Editing by Toby Chopra)
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