German inflation slowed in November as energy prices retreated and the sovereign debt crisis curbed economic growth.
The inflation rate in Europe’s largest economy, calculated using a harmonized European Union method, declined to 2 percent from 2.1 percent in October, the Federal Statistics Office in Wiesbaden said today. That’s in line with the median forecast of 23 economists in a Bloomberg News survey. In the month, prices fell 0.1 percent.
Oil prices have dropped about 11 percent this year as a cooling global economy damps demand. Europe’s debt crisis is also hampering German economic growth, leaving companies with less room to raise prices. The Organization for Economic Cooperation and Development yesterday cut its forecasts for German expansion to 0.9 percent this year and 0.6 percent in 2013.
“Inflation remains very tame in Germany, although the country remained relatively resilient to the ongoing slowdown,” said Annalisa Piazza, an economist at Newedge Strategy in London. “Inflation is certainly not a major worry for policy makers at the current juncture.”
The European Central Bank aims to keep inflation in the 17-nation euro region just below 2 percent. The euro-area rate will decline to 2.4 percent this month from 2.5 percent in October, according to another survey of economists. That report is due on Nov. 30.
Non-harmonized German inflation slowed to 1.9 percent in November from 2 percent in October, today’s report showed.