German inflation slowed as expected in December and average 2003 inflation was at its lowest level in four years, preliminary data released by the Federal Statistics Office showed today.
Economists said benign price reports from Germany and last week from Italy, two of the euro zone's top three economies, indicated the bloc's inflation could slow to 2.1 per cent this month, from 2.2 per cent in November.
The statistics office gave a preliminary average inflation rate of 1.1 per cent for Europe's largest economy in 2003, which compares to 1.4 per cent in 2002.
"This is the lowest annual rate since 1999," the office said, adding 1999's rate was 0.6 per cent.
In December, on a monthly basis German consumer prices rose by 0.8 per cent, after a drop of 0.2 per cent in November. On an annual basis, inflation slowed to 1.1 per cent year-on-year in December, from 1.3 per cent in November.