- Bundesbank
German consumer inflation rose in November, but remained well below the European Central Bank target amid ongoing pressure from weak energy prices. Germany's CPI increased 0.4% in the reported month from a year earlier, up from October's 0.3% rise. At the same time, the Harmonized Index of Consumer Prices showed inflation in the Euro zone's powerhouse climbed an annualized 0.3%, up from the previous month's 0.2% gain. The main drag came from the decline of total energy prices, which plunged 8.6% in November. Germany's Bundesbank lowered its inflation outlook for the next two years. The central bank cut its projection for consumer prices in 2015 to 0.2% from 0.5% estimated in June and lowered its 2016 forecast to 1.1% from 1.8%. The German economy is expected to grow 1.7% this year, 1.8% next year and 1.7% in 2017.
Meanwhile, industrial production in Italy rose for the second consecutive month in October. Industrial output increased 0.5% on a monthly basis in the reported month, up from a 0.2% gain in September and overshooting economists' forecast for a 0.3% growth. On an annual basis, industrial production surged 2.9%, following September's 1.8% rise.
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