Inflation slows in several German states in December

Inflation slows in several German states in December | Global Banking & Finance Review | GBAF

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Home > Finance > Inflation slows in several German states in December

Finance

Inflation slows in several German states in December

Published by Global Banking and Finance Review

Posted on January 6, 2026

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Tags:European Central Bank economic growth financial markets

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)

Frequently Asked Questions about Inflation slows in several German states in December

1What is inflation?

Inflation is the rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power.

2What is the European Central Bank?

The European Central Bank (ECB) is the central bank for the euro and administers monetary policy within the Eurozone.

3What is the significance of the inflation rate?

The inflation rate indicates how much prices have increased over a specific period, impacting purchasing power and economic policy.

4What is a national inflation rate?

The national inflation rate measures the overall increase in prices across an entire country, reflecting economic conditions.

5What are economists' expectations regarding inflation?

Economists often analyze inflation trends to predict future economic conditions and guide monetary policy decisions.