German prices edge up

Germany's consumer price index rose 2.1 percent on a 12-month basis in January, official data showed Friday, falling fractionally short of expectations for an increase in prices of just 2.0 percent.

On a monthly basis, however, the cost of living in Germany fell by 0.4 percent in January from December, the national statistics office Destatis said. 

The figures mean that annual inflation in the eurozone's biggest economy is remaining above the European Central Bank's target, which considers a rate of 2 percent as the limit for price stability.

January inflation was driven primarily by rising energy costs, Destatis said.

Higher heating costs

Once again, inflation last year was driven by higher fuel prices which went up 6.4 percent year-on-year.

In addition, prices for oil and gas used for heating spiked this winter, due to the cold weather, causing energy bills to rise by 17.2 percent. The rise in costs for electricity was markedly lower with 1.1 percent.

In 2011, Germans also needed to spend more on foodstuffs - up 3 percent – with the coffee prices soaring by a staggering 17.7 percent.

Destatis said the 0.4 percent monthly drop in inflation from December was due to markedly lower travel expenses after the Christmas holiday season, notably a 4.2 percent decline in costs for flights.  

uh/nk (AFP, dpa)