FILE PHOTO: The European Central Bank (ECB) logo in Frankfurt, Germany, January 23, 2020. REUTERS/Ralph Orlowski
November 29, 2021
BERLIN (Reuters) – German inflation is set to surpass the 5% threshold in November for the first time in nearly three decades, regional data from several states suggested on Monday, increasing pressure on the European Central Bank to react to rising prices.
Preliminary data from North-Rhine Westphalia, Bavaria, Hesse, Brandenburg and Saxony showed that consumer price inflation (CPI) rose in a range between 5.0-5.7% on the month in November.
The pan-German inflation data for Europe’s largest economy is due later on Monday (1300 GMT).
A Reuters poll of analysts points to an overall CPI increase of 5% for Germany in November, which would be the highest rate since September 1992.
The EU-harmonized inflation figure (HICP) is projected to hit 5.5%. This would be the highest reading recorded since the EU-harmonised series began in 1997.
ECB board member Isabel Schnabel told ZDF television on Monday that the central bank believes inflation peaked in November, meaning it would be premature to raise rates as price increases look likely to slow gradually next year.
(Reporting by Michael Nienaber; Editing by Gareth Jones)