Germany's inflation rate stuck at 2.3%

Inflation in Germany remains stubbornly above the 2% mark, according to official figures released on Friday.

In November, consumer prices were 2.3% higher than in the same month last year, as had been the case in October too, Germany's Federal Statistical Office announced, based on preliminary figures.

While services are becoming significantly more expensive, food prices are rising only slowly. Inflation has now been above the symbolically important 2% mark for the fourth month in a row.

Bringing down inflation remains a slow process, said Michael Heise, chief economist at the German-based asset manager HQ Trust. "Consumers will probably have to wait a few more months for some relief," he said. 

The cost of services - including car insurance, package holidays and visits to hairdressers and restaurants - increased by 3.5% in November.

"In the service sector, staff shortages are leading to significant wage increases in some cases," said Thomas Gitzel, chief economist at Liechtenstein-based VP Bank. "The higher wages are being passed on to prices."

An upcoming increase in the minimum wage on January 1 is also likely to be largely passed on to end-consumers.

Food prices in November were 1.2% higher than in the same month last year, rising less than the general inflation rate.

However, there was hardly any relief in energy prices. The statistics show that fuel, electricity and gas were just 0.1% cheaper overall in November than a year earlier.