Inflation in Germany eased more than expected in November, according to official data released in early-December.

Prices in Europe’s largest economy are increasing at the slowest rate seen since June 2021, mainly thanks to falling energy prices. Compared to November of last year, prices are up 2.3%, but inflation is down 0.7% on a month-to-month basis.

The annual increase undercuts predictions, with analysts from Reuters previously forecasting a 2.6% jump. The figures cited are the harmonised index of consumer prices (HICP), which are adjusted to allow comparisons between EU member states.

German Consumer Price Index data for November (CPI inflation), was 3.2% higher than the same month a year earlier and down 0.4% compared to October 2023.

“The rate of inflation has slowed for the fifth consecutive month”, said Ruth Brand, President of Germany’s Federal Statistical Office. She added: “In October and November 2023, many energy products, in particular, cost less than they did a year earlier.”

Easing inflation is raising hopes that the European Central Bank (ECB) will cut interest rates next year. More widely, the annual inflation rate in the eurozone was recorded at 2.4% in November, down from a 2.9% annual rise in October 2023.