German official inflation edges up in December

Inflation in Germany, Europe's biggest economy, edged higher to 2.1 percent in December from 1.9 percent in November, official data showed on Wednesday. On a monthly basis, the German consumer price index (CPI) rose by 0.9 percent last month, largely owing to seasonal factors, according to preliminary data compiled by the national statistics office Destatis. Taking 2012 as a whole, inflation in Germany stood at an annual average 2.0 percent, the statisticians calculated. Using the Harmonised Index of Consumer Prices (HICP), the ECB's inflation yardstick, the rate of inflation in Germany also accelerated to 2.1 percent in December from 1.9 percent in November, and the annual average for the whole of 2012 stood at 2.1 percent, Destatis said. The ECB defines price stability as increases in HICP of close to but just below 2.0 percent. Preliminary inflation data are calculated using consumer price data for six of Germany's 16 federal states. Final data, based on statistics for all 16 states, are scheduled to be published on January 15.