German inflation has seen a steady decline over the past five months, with November confirming prior estimates. The decrease can be attributed to falling energy prices, signifying that rate cuts may soon be on the horizon for the European Central Bank.
According to data from the German statistics office Destatis, consumer prices in November were 3.2% higher compared to the same month the previous year. This is a drop from the 3.8% inflation rate in October.
Destatis had previously released preliminary estimates at the end of November, which align with the latest data. A consensus of economists polled by The Wall Street Journal also predicted this decline.
Ruth Brand, president of Destatis, noted that in October and November 2023, many energy products were cheaper compared to the previous year. This has led to an overall easing in the price situation. Although inflation for food has weakened, it still remains higher than the overall inflation rate.
This latest data indicates that rate cuts by the European Central Bank may be imminent, as they continue to monitor and respond to changing economic conditions.