German inflation eased for a second month in a row in December on falling energy prices and a one-off payment by the government for household energy bills, coming in below expectations even as analysts warned that a sustained slowdown was not a certainty.
German consumer prices, adjusted to compare with other European Union countries, rose by 9.6% year-on-year in December. Analysts on the other hand even predict December annual inflation will increase by 10.7%.
October saw the highest reading with inflation rising by 11.6%. In November, the increase in inflation has started to slow down to 11.3%.
Compared to November, prices decreased by 1.2%. Analysts had expected a 0.5% fall in the previous month.
The annual increase has been driven primarily by higher food and energy costs as a result of the war in Ukraine.
Energy prices eased slightly in December but still rose 24.4% compared to the same period last year, while food prices rose by 20.7%, according to the office.
Energy prices eased slightly in December but still rose 24.4% compared to the same period last year, while food prices rose by 20.7%, the statistics department reported.
