Inflation in the German state of Hesse accelerated in December on prices for food and travel.
The inflation rate increased to 2.2 percent from 1.8 percent in November, Hesse’s statistics office in Wiesbaden said in a statement today. In the month, consumer prices rose 0.9 percent.
Oil prices fell more than 7 percent this year as the cooling economy curbed demand. The euro area entered its second recession in four years in the third quarter and the German economy, the region’s largest, may have contracted markedly in the fourth quarter, according to the Bundesbank. The European Central Bank forecasts that inflation in the 17-nation currency bloc will slow to below its 2 percent limit next year.
“Inflation isn’t a big concern right now,” said Jens-Oliver Niklasch, an economist at Landesbank Baden-Wuerttemberg in Stuttgart. “I expect inflation rates of around 2 percent for both Germany and the euro area in 2013.”
Germany’s inflation rate for December, based on data from six states including Hesse, will be published on Jan. 2, the Federal Statistics Office in Wiesbaden said today, amending a previous publication date of Jan. 3. The states of Saxony, Brandenburg, Bavaria, Baden Wuerttemberg and North Rhine-Westphalia will also release their reports on Jan. 2. In November, the inflation rate declined to 2 percent, from 2.1 percent in October.
In the euro area, inflation slowed to 2.2 percent in November from 2.5 percent in the previous month. The European Union’s statistics office in Luxembourg is due to release its first estimate for December inflation on Jan. 4.
Food prices in Hesse increased 1 percent in December, prices for train tickets and plane tickets rose 3.1 percent and 2.9 percent respectively, the state’s statistics office said today.