German inflation slows to 9.6% thanks to household subsidies

Confidence edges up amid positive price and unemployment data but Bundesbank warns of continued uncertainty 

The Bundesbank predicts inflation will remain above 7%. Stock picture

German inflation slowed more than anticipated in December after the government paid some households’ gas bills for the month, offering a temporary respite in the country’s cost-of-living crisis.

Consumer price growth at 9.6% was the weakest since August. Economists anticipated 10.2%, according to the median of 20 forecasts.