German consumer prices showed a sharp seasonal rise in December, according to data from five states, but analysts said national annual inflation was likely to be below November's 2.3 per cent.
The rise in prices over November came on the back of higher prices for goods and services associated with the Christmas season, the data from Baden-Wuerttemberg, Saxony, Bavaria, Brandenburg and North Rhine-Westphalia showed.
They included package holidays, flights and overnight accommodation, and seasonal fruits and vegetables.
The remaining state, Hesse, is expected to report later today or tomorrow. The figures from the six major states, the first indicator of euro zone inflation trends for this month, will be used to compile a preliminary German inflation figure.
The EU statistics agency Eurostat is due to release the flash estimate of overall euro zone inflation on January 4th, with current forecasts putting the figure at 2.3 per cent, level with the November figure.
Economists said the strong seasonal rise in Germany was a normal end-of-year effect but future inflation would be subject to the direction of crude oil prices, which helped push household energy prices sharply higher on an annual basis.
WestLB economist Joerg Lueschow said that on the basis of the data from Baden-Wuerttemberg and Saxony, the first two states to report, pan-German inflation could stand at 0.9 per cent on the month and 2.1 per cent on the year, down from 2.3 per cent in November.
He said he expected an annual average pan-German rate of 2 per cent, the highest since 2001 and up from 1.6 per cent in 2004.
"We expect a stronger rise at the beginning of the new year. Prices for gas and electricity will increase, transportation will become more expensive," he said.
Big monthly increases in prices of package holidays, which were up by 31.3 per cent in three states, hotel accommodation and flight costs stood out in all the state data for December.
Over the year, higher crude oil prices had a big impact, leading to steep annual rises in the cost of household energy and heating fuels.