German Inflation Set to Slow in November

Inflation in Germany, the euro zone's biggest economy, looked set to slow this month as a result of easing energy prices, key regional data showed on Wednesday. In the central state of Hesse, the consumer price index (CPI) fell by 0.6 percent in November from the figure for October and was 1.4 percent higher than it had been in November 2003, the regional statistics office in Wiesbaden said in a statement. The 12-month rate of inflation was therefore slower than the 1.6 percent recorded the previous month. In the southern state of Bavaria, regional inflation also slowed to 2.1 percent on a 12-month basis from 2.5 percent in October. And in the eastern state of Brandenburg, CPI rose by 2.1 percent on a 12-month basis in November, slower than the 2.5 percent rate recorded the previous month. Preliminary pan-German inflation figures are calculated on the basis of consumer price statistics for six so-called indicator states -- Baden-Württemberg, Bavaria, Brandenburg, Hesse, North Rhine-Westphalia and Saxony. (AFP)