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German inflation at 10-year low of 0.4%

German economy - Inflation at 10 year low
German economy - Inflation at 10 year low

German inflation averaged 0.4% in 2009, its lowest level in 10 years, provisional figures released today by the national statistics office showed.

In 2008, consumer prices gained 2.6% in Europe's biggest economy, a level last seen in 1994, according to data provided by the Destatis office.

Lower energy and food prices compared with peaks in 2008 have kept inflation down in Germany, while rising unemployment has also prevented workers from demanding substantially higher wages.

The last time inflation was anywhere near this low was in 1999 when it reached 0.6%, Destatis said. Inflation even dipped briefly into negative territory in the middle of this year, reaching -0.5% in July, the lowest rate since 1987.

Towards the end of this year prices have perked up, however, gaining 0.8% in December compared with the same month a year earlier.

Destatis releases a provisional estimate based on six representative German states, and is to publish the final figure on January 14.