Inflation & Prices

German Inflation Slowing Sharply to 2% Backs ECB Rate Hold

The BEW Klingenberg gas operated power station in Berlin, on Nov. 27.Photographer: Krisztian Bocsi/Bloomberg

German inflation slowed more than expected at the end of last year, offering little reason for the European Central Bank to change its course.

Consumer prices rose 2% in December after a 2.6% gain the previous month, the Federal Statistics Office said Tuesday. The median forecast in a Bloomberg survey was for a reading of 2.2%.