German states' inflation rates are slightly rising, indicating a nationwide increase in November

Inflation increased in several German states in November, according to preliminary data released on Thursday, suggesting a rise in the national inflation rate as anticipated.

In Bavaria, the annual inflation rate climbed to 2.6% in November, up from 2.4% the previous month. Other states also saw slight upticks, with Brandenburg rising to 1.9% from 1.8%, Saxony to 2.9% from 2.8%, Hesse to 2.0% from 1.8%, and Baden-Wuerttemberg to 2.2% from 2.1%.

However, North Rhine-Westphalia, Germany's most populous state, saw a slight decline in inflation, dropping to 1.9% from 2.0% in October.

National inflation data is expected to be released later on Thursday. Economists surveyed by Reuters predict that Germany’s harmonised inflation rate will rise for the second consecutive month, reaching 2.6% in November from 2.4% in October.

Cyrus de la Rubia, economist at Hamburg Commercial Bank, noted that the data from the states aligned with expectations of a national inflation increase. However, the unexpected drop in inflation in North Rhine-Westphalia raised hopes that the national rate might not rise as sharply as initially feared.

Investors will be closely monitoring the inflation data for Germany, as well as for the broader euro zone, with the latter scheduled for release on Friday. The figures will be crucial in determining the European Central Bank's next steps. The ECB is expected to reduce interest rates further in upcoming meetings, though the extent and pace of these cuts remain uncertain.

Economists expect the harmonised inflation rate for the euro zone to rise to 2.3% in November, up from 2.0% in the previous month.

 

 

 

 

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.