German official inflation hits two-year high

26th November 2010, Comments 0 comments

Rising prices for fuel, fruit and vegetables unexpectedly pushed German inflation to a more than two-year high point in November, the country's statistics office said on Friday.

Prices rose by 1.5 percent from the level in November last year, surprising analysts surveyed by Dow Jones Newswires, who had expected a smaller rise of 1.3 percent.

Twelve-month inflation was last that high in October 2008, when it was 2.4 percent.

"Prices in Germany are currently rising at a sluggish pace, which is attributable in particular to moderate wage growth. But this factor may change in the years ahead," said Ulrike Rondorf, an analyst at Commerzbank.

The European Central Bank aims to keep inflation "close to but below" two percent.

The data are preliminary, the statistics office said, with more detailed figures due on December 9.

© 2010 AFP

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