Energy costs push German inflation rate up to 2.3%

January 12, 2012•1 Minutes
RTC Director RTC Director

Rising energy prices pushed German inflation up to 2.3% in 2011, according to official figures from Destatis.

The inflation rate compares with 1.1% in 2010 and 0.4% in 2009. It was the highest annual figure since 2008, when inflation was 2.6%.

It takes Germany outside the European Central Bank’s target rate for eurozone inflation, which is close to, but below, 2.0%.

Excluding energy prices, inflation would only have been 1.3%.

Energy prices, including motor fuels, rose 10% in the year. Motor fuel and heating oil prices alone rose 13.9% in the year.

The figures come on the day of the European Central Bank’s latest monthly interest rate decision.

Rates are expected to be left unchanged at 1.0%, following two consecutive months of cuts.