German inflation accelerates more than expected towards end of 2024

While eurozone inflation retreated rapidly in 2024, it’s now seen fluctuating around its current level

In Germany, factors including an increase in the cost of the nationwide public transport ticket and a higher national carbon price are set to keep inflation pressures elevated. Picture: Hannelore Foerster/Bloomberg via Getty

German inflation accelerated more than anticipated last month, backing the European Central Bank (ECB) plans to keep cutting interest rates only gradually.

Consumer prices rose 2.9% from a year ago in December, up from 2.4% the previous month. The rise was driven by energy and food costs, the statistics office said.