Inflation in the German state of North Rhine-Westphalia held steady in November.
The inflation rate in Germany’s most populous state remained at 1.9 percent, the state’s statistics office in Dusseldorf said in a statement today. In the month, consumer prices fell 0.1 percent.
Economists predict that pan-German inflation, calculated using a harmonized European Union method, will slow to 2 percent from 2.1 percent in October, according to the median of 23 estimates in a Bloomberg News survey. The Federal Statistics Office is due to publish that report, based on data from six states, tomorrow.
Oil prices have declined about 11 percent this year as a cooling global economy curbs demand. Europe’s sovereign debt crisis is also damping German economic growth, leaving companies with less room to raise prices. The Organization for Economic Cooperation and Development today cut its forecasts for German expansion to 0.9 percent for this year and 0.6 percent for 2013.
“For a change, inflation is not a big concern for Germany right now,” said Alexander Koch, an economist at UniCredit Group in Munich. “It will hover around the 2 percent mark for the foreseeable future, meaning we don’t have any deflationary risks either.”