{"id":122318,"date":"2026-01-06T18:35:01","date_gmt":"2026-01-06T14:35:01","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=122318"},"modified":"2026-01-06T18:35:06","modified_gmt":"2026-01-06T14:35:06","slug":"german-inflation-slows-to-2-0-in-december-raising-expectations-ahead-of-eurozone-data","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/german-inflation-slows-to-2-0-in-december-raising-expectations-ahead-of-eurozone-data\/01\/06\/market-updates\/","title":{"rendered":"German Inflation Slows to 2.0% in December, Raising Expectations Ahead of Eurozone Data"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>German inflation cooled more than expected in December, falling to <strong>2.0% year-on-year<\/strong>, according to preliminary figures released Tuesday by the federal statistics office. Economists polled by Reuters had expected EU-harmonised inflation to ease to <strong>2.2%<\/strong> from <strong>2.6%<\/strong> in November.<\/p>\n\n\n\n<p>Core inflation \u2014 which excludes food and energy \u2014 also moderated, slipping to <strong>2.4%<\/strong> from <strong>2.7%<\/strong> the prior month. Regional data indicated that the slowdown was not driven solely by favourable energy base effects, but also by lower prices for <strong>leisure, clothing, and food<\/strong>.<\/p>\n\n\n\n<p>Germany remains in the early stages of a sluggish recovery after two consecutive years of economic contraction, with growth in 2025 estimated at just <strong>0.2%<\/strong> as Chancellor <strong>Friedrich Merz\u2019s<\/strong> fiscal measures take time to filter through the economy. Despite the latest easing in headline inflation, analysts cautioned that price growth may not fall much further in early 2026, with <strong>services inflation<\/strong> expected to remain sticky.<\/p>\n\n\n\n<p><strong>Eurozone outlook turns to upcoming inflation release<\/strong><\/p>\n\n\n\n<p>The German figures arrive ahead of Wednesday\u2019s eurozone inflation report. Early national readings suggest that <strong>headline inflation in the bloc may have dipped below 2% in December<\/strong>, while the core rate also likely edged lower, according to <strong>Franziska Palmas<\/strong> of Capital Economics.<\/p>\n\n\n\n<p>Eurozone inflation has hovered near the <strong>European Central Bank\u2019s 2% target<\/strong>, supported in part by persistent increases in services prices. Most analysts expect the <strong>ECB to keep interest rates on hold<\/strong> in the coming months as policymakers assess the durability of the disinflation trend and the strength of the region\u2019s fragile growth outlook.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>German inflation cooled more than expected in December, falling to 2.0% year-on-year, according to preliminary figures released Tuesday by the federal statistics office. Economists polled by Reuters had expected EU-harmonised inflation to ease to 2.2% from 2.6% in November. Core inflation \u2014 which excludes food and energy \u2014 also moderated, slipping to 2.4% from 2.7% &hellip;<\/p>\n","protected":false},"author":9,"featured_media":107837,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,6827,49,36],"tags":[],"class_list":["post-122318","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-daily-economic-reports","category-economic-reports","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/122318","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=122318"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/122318\/revisions"}],"predecessor-version":[{"id":122319,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/122318\/revisions\/122319"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/107837"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=122318"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=122318"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=122318"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}