Inflation in Germany averaged 1.6% in 2004, its highest level in three years, with increased tobacco taxes pushing up the cost of living in the euro zone's biggest economy at the end of the year, final data showed today.
In December alone, the German consumer price index rose by 2.1% on a 12-month basis, the data showed, fractionally higher than the preliminary estimate of 2% calculated last month.
The federal statistics office, Destatis, calculated that consumer price inflation averaged 1.6% in the whole of 2004, up from 1.1% in 2003 and 1.4% in 2002. It was the highest average annual rate of inflation since 2001, the statisticians noted.
In December alone, the cost of living in Germany rose by 2.1% on a 12-month basis, noticeably faster than the 1.8% recorded the previous month.
Higher prices for package holidays, holiday accommodation and higher tobacco taxes were the reason for the acceleration, Destatis said.
