German inflation slows to 10pc

The inflation rate in Europe's top economy dropped to 10 per cent for November, preliminary data from Germany's federal statistics agency Destatis showed. This comes after hitting a record high in October.

German inflation unexpectedly slowed to 10 per cent in November, preliminary data showed Tuesday.

This comes after record inflation levels of 10.4 per cent, year-on-year, for October.

The new data is a signal that sky-high energy prices in Europe's biggest economy have begun to ease after months of increases in the wake of Russia's invasion of Ukraine and this was reflected in the slight drop in inflation.

Despite the slowing down of price increases, Destatis noted the cost of energy was still 38.4 per cent higher than a year ago.

The German government has unveiled an energy fund worth €200 billion ($207 billion) to help protects households and businesses from the impact of soaring prices. The federal government has also raced to diversify supplies after Russia cut gas deliveries.

Tuesday's data offered a "very small breather" for a country bracing itself for a difficult winter, said ING bank economist Carsten Brzeski.

Last week, Germany's economy recorded a 0.4 per cent growth during the third quarter of the year while consumer confidence also inched up, after a long period of decline.

While some economists saw this as a sign the ongoing recession may not be as bad as initially expected, others warned it could be the calm before the storm.