- Carsten Brzeski, an economist at ING Group
The average price change for all goods and services purchased by households in Germany fell in November, affected by the Eurozone's debt crisis, the state's statistics office in Dusseldorf said Wednesday. The inflation rate in country' most populous state remained at 1.9%, while consumer prices fell 0.1%. At the same time, it is expected that German's inflation, calculated using a harmonized European Union method, will decelerate to 2% from 2.1% in October.
"Germany is in the enviable position of having neither an inflation nor a deflation problem," said Carsten Brzeski, an economist at ING Group in Brussels.
"Inflation remains very tame in Germany, although the country remained relatively resilient to the ongoing slowdown," said Annalisa Piazza, an economist at Newedge Strategy in London.
In a separate report, the Organization for Economic Cooperation and Development said that Europe's biggest economy is likely to expand only by 0.9% this year and 0.6%in 2013. They also said that robust labour market, strong growth in wages and easy credit would help German economy to buck recessionary trends elsewhere in the region. However, they lowered their forecast from May's estimate of 1.2% growth in this year and 2.0% during the next.
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