Initial data signal a further fall in inflation
A significant fall in inflation rates in some cases in several federal states points to a further slowdown in inflation in Germany. In Hesse and Bavaria, inflation rates fell below the 3 percent mark in November, according to data published on Wednesday morning.
Inflation also weakened significantly in Baden-Württemberg, while in North Rhine-Westphalia it fell slightly to 3 percent.
In Bavaria, the State Statistical Office reported a fall in the inflation rate to 2.8 percent, after it had stood at 3.7 percent in October. In Hesse, the inflation rate fell from 3.6% to 2.9%. Inflation also weakened significantly in Baden-Württemberg: the annual rate fell from 4.4 percent to 3.4 percent.
This means that the inflation rates in the four federal states are well below the overall German inflation rate, which was 3.8 percent in October. The first estimate of the inflation rate for Germany in November, based on data from the federal states, is expected in the afternoon (14:00).
However, the publication of price data from Saxony and Brandenburg showed inflation rates for November that are higher than the most recent rate for Germany as a whole: According to this, inflation in Saxony was 3.9 percent and in Brandenburg 4.1 percent.
Given the decreasing inflation rates in various German federal states, such as Hesse and Bavaria, and the weakening of inflation in others like Baden-Württemberg, one can anticipate that consumers may benefit from lower prices in the near future, potentially improving their overall economic situation. As prices decrease due to lower inflation, disposable income for consumers might increase, potentially stimulating economic activity further.
Source: www.dpa.com
