German inflation slowed in December but Europe's biggest economy still registered its highest annual inflation rate in 14 years, provisional official figures released today show.
The inflation rate eased to 1.1% in December compared with the same month last year, down from 1.4% in November, according to the figures from the national statistics office Destatis.
But for all of 2008, an inflation rate of 2.6% exceeded last year's level of 2.2% and was the highest since 1994, when it reached 2.8%.
2008 started out with relatively high inflation rates, which were highest in June and July at 3.3% on a 12-month basis, a Destatis statement said. The spike and a subsequent sharp slowdown were mainly the result of volatile prices for fuels and some food items, it added. Final figures are due on January 15.
Analysts said inflation for the entire euro zone, which will have 16 members when Slovakia joins on Thursday, should now fall below 2% in December for the first time since August 2007. The European Central Bank's medium-term target is close to but below 2%.
