Finance
Inflation slows in several German states in December
Published by Global Banking & Finance Review®
Posted on January 6, 2026
1 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 6, 2026
1 min readLast updated: January 20, 2026
Inflation in several German states slowed in December, suggesting a lower national rate. Economists predict a drop to 2.2% from 2.6% in November.
BERLIN, Jan 6 (Reuters) - Inflation slowed in several German states in December, official data showed on Tuesday, pointing to a lower national rate in Europe's largest economy.
Official national data are due at 2 p.m. (1300 GMT).
Inflation fell below the 2% mark in North Rhine-Westphalia, Germany's most populous state, as well as Lower Saxony and Saxony.
Economists surveyed by Reuters expect national inflation to decline to 2.2% in December, down from 2.6% in November.
A eurozone-wide report is expected on Wednesday.
Inflation in the bloc has hovered around the European Central Bank's 2% target, boosted by price hikes in the services sector, and is expected to stay there for the foreseeable future.
Most analysts expect the ECB to keep its interest rate unchanged in the coming months.
(Reporting by René Wagner, writing by Thomas Seythal, editing by Miranda Murray)
Inflation is the rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power.
The European Central Bank (ECB) is the central bank for the euro and administers monetary policy within the Eurozone.
The inflation rate indicates how much prices have increased over a specific period, impacting purchasing power and economic policy.
The national inflation rate measures the overall increase in prices across an entire country, reflecting economic conditions.
Economists often analyze inflation trends to predict future economic conditions and guide monetary policy decisions.
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