High service costs keep German inflation at 2.3% in November

Germany's inflation rate remained above the 2% mark in November, driven by rising service costs and higher food prices, the Federal Statistical Office said on Friday as it confirmed its preliminary estimate.

Consumer prices rose 2.3% year-on-year, matching the increase recorded in October and marking the fourth consecutive month above 2%, the agency reported.

Inflation in Europe's largest economy has been fuelled for months by significantly higher prices for services due to labour shortages and wage increases.

Service costs climbed 3.5% in November compared to the same month last year, the same rate as in October. Domestic package holidays were 12% more expensive than a year earlier, while train fares rose 11.9%.

Food inflation eased to 1.2%, but some staples saw steep increases: tinned fruit jumped 27.5%, coffee 21.1% and chocolate 19.4%. Butter prices fell 22%.

November brought little relief for consumers when it came to energy prices, with fuel, electricity and gas just 0.1% cheaper than a year earlier.

Core inflation, which excludes volatile food and energy prices, edged down to 2.7% year-over-year in November from 2.8% in October.

On a monthly basis, consumer prices fell 0.2% in November. The European Central Bank aims for medium-term inflation of 2% across the eurozone.