German inflation holds at 2.3 pct in November

Berlin [Germany], November 29: Germany's inflation rate held steady at 2.3 percent in November, still above the European Central Bank's target of 2 percent, preliminary data from the Federal Statistical Office (Destatis) showed on Friday.
Declining energy prices, which had been a key factor dampening inflation in recent months, provided only limited relief in November, slipping just 0.1 percent year-on-year.
Service-sector inflation remained elevated, rising 3.5 percent from a year earlier - the strongest increase in more than six months. Since early 2025, service-price growth has consistently outpaced the headline rate, driven by higher costs for combined passenger transport, social services, in-patient healthcare, insurance and package holidays.
Carsten Brzeski, global head of macro at ING, said selling-price expectations had risen again in both services and manufacturing, adding that incoming fiscal stimulus could add to inflationary pressures. However, he noted that a stronger euro, favorable energy base effects and continued declines in producer prices were exerting disinflationary influence.
"In short, German headline inflation should move towards 2 percent at the turn of the year before reaccelerating again," Brzeski said.
The latest inflation figures come as Europe's largest economy continues to show little momentum. Provisional data released by Destatis this week confirmed that gross domestic product (GDP) stagnated in the third quarter, underscoring the weak economic backdrop behind persistent price pressures.
Source: Xinhua News Agency