span>span>Tuesday 29th November /span>span>2022/span>span> - 13:45 (GMT)/span>/span>
Figures released by the Statistisches Bundesmant Deutschland have indicated that German inflation eased during November. Preliminary estimates show consumer prices increased 10% over the month - down from Octobers 10.4% and slightly lower than market expectations of 10.3%.
Investor concerns of spiralling wages and energy costs further stoking recent inflationary pressures within the EU were also reduced following recent landmark agreements.
Firstly, the country’s biggest union and its government struck a 5.2% wage increase for automotive, metal and electrical workers. The government also signed a 15-year long-term LNG import contract with Qatar (starting from 2026) as the country continues its efforts to move away from Russian supplies.
However, ECB President Christine Lagarde said on Monday inflation in the 19-country euro zone has not peaked and it risks turning out even higher than currently expected, hinting at a series of interest rate hikes ahead.
Her comments, along with remarks by Dutch central bank chief Klaas Knot earlier, increased bets on further near-term interest rate moves by the central bank. The ECB has increased its base level by a record 200 basis points to 1.5% over the last three months in a bid to dampen demand and lower price growth.
