German inflation confirmed at 1.7% in December

14th January 2011, Comments 0 comments

Inflation in Germany, the largest European economy, climbed to 1.7 percent in December, giving a full-year figure of 1.1 percent, figures released on Friday by the national statistics office showed.

The Destatis office thus confirmed an estimation first provided in late December, and said rising prices for energy and food products were the main factors in the latest increase.

For all of 2010, more expensive motor fuels were responsible for most of the increase, it added.

Destatis remarked that both the annual rate and the one measured each month remained below the European Central Bank's (ECB) target of below but close to 2.0 percent.

For the eurozone as a whole however, inflation is estimated to have reached 2.2 percent, the European Union's statistics arm Eurostat said on January 4.

On Thursday, ECB president Jean-Claude Trichet warned that inflation would probably climb higher in the coming months, and said the bank was monitoring the situation closely.

That could mean an increase in the eurozone's main interest rate this year from its current record low of 1.0 percent.

© 2011 AFP

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