Inflation Pace Slows in German States in November off Reunification Highs

Germany’s consumer inflation slowed more than expected in November in five states, data showed on Tuesday. The European Central Bank has been raising rates to tame prices. Germany’s most populous state, North Rhine-Westphalia, annual inflation slowed this month to 10.4% from 11.0% in October. Inflation also eased slightly in Saxony, Baden-Wuerttemberg, Bavaria, Brandenburg and Hesse. The German national reading was at 10.4% in October 2022, a fresh peak since the reunification, amid euro weakness, a deepening energy crisis, and lingering supply chain issues. The National figure will be released later today

Germany Finance

ECB President Christine Lagarde said on Monday inflation in the euro zone has not peaked and it risks turning out even higher than currently expected, hinting at a series of interest rate hikes ahead.

Latest data released by Destatis

German States November CPI

  • Saxony CPI +9.9% vs +10.1% y/y prior
  • Saxony CPI -0.3% vs +1.1% m/m prior
  • Hesse CPI +9.7% vs +9.9% y/y prior
  • Hesse CPI -0.4% vs +1.1% m/m prior
  • Brandenburg CPI +10.5% vs +10.8% y/y prior
  • Brandenburg CPI -0.5% vs +1.1% m/m prior
  • Baden-Wuerttemberg CPI +9.6% vs +9.8% y/y prior
  • Baden-Wuerttemberg CPI -0.2% vs +0.8% m/m prior


In November 2022, Saxony’s annual inflation rate was 9.9 percent and thus fell slightly below the 10 percent mark. Without the influence of energy positions (+32.9 percent), inflation would have been 7.2 percent year-on-year.

Germany Saxony CPI YoY

Compared with November 2021, prices for food (22.4 percent), electricity, gas and other fuels (43.0 percent) and transport (10.7 percent) in particular rose at an above-average rate. For traditional Christmas baking, there were price increases for flour (81.8 percent), sugar (49.6 percent), butter (42.5 percent), eggs (22.2 percent) and honey (18.4 percent). Chocolate (12.7 percent) for Santa Claus boots and red wine (11.4 percent) for mulled wine rose in price, as did coffee beans (19.2 percent) and cookies (19.1 percent) for drinking Advent coffee.

Compared to the previous month, prices fell by an average of 0.3 percent in November 2022. This is not least due to price declines for heating oil (-7.5 percent) and motor fuels (-4.9 percent) as well as good offers for package holidays (-25.3 percent). The fee schedule for veterinarians, which came into force in November, had an effect with 11.5 percent higher prices for veterinary services. The lack of sunlight could be compensated with a 14.9 percent increase in the fee for the solarium visit. If no correction is published on 05.12.2022, the published indices are to be regarded as final.

Source: Destatis, TC, NSI, Saxony

Germany October preliminary CPI +7.6% vs +8.0% y/y expected

  • Germany annual inflation rate was at 10.4% in October 2022
  • The goods inflation rose to 17.8% in October from 17.2% a month earlier, led by high cost of energy (43.0% vs 43.9% in September) and an acceleration in food prices (20.3% vs 18.7%).
  • Cost of services quickened (4.0% vs 3.6%), with rent prices rising further by 1.8%. The prices of energy products increased sharply, especially for natural gas (109.8%), heating oil (35.6%), electricity (26.0%), and motor fuels (22.3%).
  • On a monthly basis, consumer prices were up 0.9% in October. The CPI, harmonized to compare with other European countries, increase 11.6% on the year, the highest level on record; and went up 1.1% month-on-month. 
German Monthly CPI

From The TradersCommunity Research Desk