ZCZC
BCN-09
GERMANY-INFLATION-INDICATOR
German inflation holds steady in November
BERLIN, Nov 29, 2019 (BSS/AFP) – German inflation remained stuck at the low
level of 1.1 percent in November, preliminary data showed Thursday, despite
fresh stimulus from the European Central Bank to stoke price growth.
Consumer prices rose 1.1 percent year-on-year this month, the same rate as
in October, federal statistics authority Destatis said in a statement.
The picture was somewhat brighter when looking at the ECB’s preferred
yardstick — the Harmonised Index of Consumer Prices — which recorded a
November inflation rate of 1.2 percent, up from 0.9 percent in October.
Analysts had been expecting a slight pick-up in inflation after the ECB in
September unleashed a fresh volley of easy money policies to tackle a weaker
economic outlook in the 19-nation eurozone.
As well as cutting a key interest rate deeper into negative territory and
loosening conditions for cheap credit to banks, the ECB restarted a massive
monthly bond-buying programme.
The measures are aimed at encouraging spending and investment to drive up
growth and bring the ECB closer to its inflation target of just under two
percent.
Despite the efforts, price increases have been stubbornly low in Europe’s
top economy in recent months as it is buffeted by trade tensions, Brexit
uncertainty and a slowdown in global growth.
BSS/AFP/HR/0925