Reply #20: German inflation at 2.2 percent in 2007: Destatis [View All]

[Ghost Dog]

BERLIN (AFP) - Inflation averaged 2.2 percent in Germany last year, its highest level in 13 years, data released Wednesday by the national statistics office showed.

The biggest European economy posted inflation of 1.7 percent in 2006, 2.0 percent in 2005 and 1.6 percent in 2004.

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VAT increased from 16 to 19 percent.

Energy prices leapt by 3.9 percent from their average level in 2006, Destatis added, with the cost of electricity gaining 6.8 percent on the year.

Food prices also pushed inflation higher, climbing by an average 3.1 percent on a 12-month basis, with spikes of 19.1 percent for butter and 15.4 percent for flour.

In December, overall inflation reached an annualised 2.8 percent, slightly lower than the 3.1 percent level in November, Destatis said.

The European Central Bank has begun to ratchet up its tone on rising prices in the 15-nation eurozone, for which the ECB has set an inflation target of just under 2.0 percent.

/... http://news.yahoo.com/s/afp/20080116/bs_afp/germanyeconomyinflation_080116094809;_ylt=AiXjpSDCDTgSdNwamXfpQO6mOrgF