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INFLATION

High German inflation eases slightly

German inflation eased in September to 2.9 percent on a 12-month basis, from 3.1 percent the previous month, final figures released on Wednesday by the national statistics office showed.

High German inflation eases slightly
Commodity prices have surged over the past year. Photo: DPA

On a monthly basis, inflation in the biggest European economy edged down by 0.1 percent, the Destatis office said.

The final figures confirmed a Destatis estimate given in late September. “A slight easing has continued,” a statement said, in part owing to base effects, which mean that strong increases in September 2007 had produced higher figures that made the difference less pronounced this time around.

Energy prices were among those that gained the most on the year, posting an increase of 12.2 percent, while the cost of food products gained 6.4 percent. When energy prices were stripped out, annual inflation fell back to 1.8 percent, Destatis said.

A breakdown of energy costs showed an increase of 14.8 percent for petroleum products, including a jump of 32.1 percent for heating oil and 10.1 percent for motor fuels.

An above-average increase of 14.1 percent was seen in the cost of natural gas used to heat homes, which would likely pinch household budgets further even as overall inflation declined.

The slight decrease in September from August was essentially the result of seasonal factors, with the cost of package tours falling by 7.0 percent on the month for example, Destatis said.

ECONOMY

Spain’s inflation soars to 29-year high

Spanish inflation accelerated in November to its highest level in nearly three decades on the back of rising food and gas prices, official data showed Monday.

black friday spain
Black Friday sales can't disguise the fact for shoppers that life in Spain is getting increasingly expensive. Photo: GABRIEL BOUYS / AFP

Consumer prices jumped by 5.6 percent, up from a 5.4 percent increase in October, according to preliminary figures from national statistics institute.

That is its fastest pace since September 1992, when the rate was 5.8 percent.

The surge in inflation in the eurozone’s fourth-largest economy was due largely to a spike in food prices, followed by higher gas prices, the statistics office said.

Electricity costs, however, declined slightly after a month-long acceleration, it added.

As in other European Union nations, inflation in Spain has risen since the start of the year after consumer prices declined during most of 2020 due to the economic impact of pandemic lockdowns.

In October, eurozone inflation reached 4.1 percent, well above the European Central Bank’s target of two percent and equal to a high set in July 2008.

But the bank believes eurozone inflation will peak in November and is set to gradually slow next year as supply bottlenecks and the energy crunch ease, board member Isabel Schnabel said earlier this month.

Investors worry central banks will withdraw their stimulus measures sooner than expected to tame inflation.

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