German annual inflation to reach highest level since 2012

BERLIN, Dec. 29 (Xinhua) -- German consumer prices rose by an estimated 1.8 percent on average in 2017, figures by the Federal Statistical Office showed on Friday.

The figure marked highest annual inflation rate recorded by the Wiesbaden-based government statisticians since 2012. Prices in 2017 also grew at more than twice the pace measured last year (0.5 percent).

However, monthly inflation in December was down slightly at 1.7 percent compared to 1.8 percent November, potentially pointing towards a gradual easing of upward pressure on prices experienced throughout a year of strong economic growth.

Germany largest online newspaper "Spiegel" attributed the development to rising rental-, energy- and food costs. A further culprit was found in the European Central Bank (ECB)'s ultra-loose monetary policy. The ongoing large bond-purchasing programme adopted by the Frankfurt-based central bank is highly controversial in Germany.

Although markedly higher than in recent years, German annual inflation was still well within the parameters of the official ECB goal of "close to, but below" 2 percent. The latest data from Germany and the wider Eurozone suggest that ECB President Mario Draghi's effort to reinvigorate the growth in the bloc are increasingly bearing fruit.

ECB figures for members of the monetary union published this Friday indicated that bank credits to companies rose by 3.1 percent in November, the fastest increase measured in over eight years. Loans to private households soared by 2.8 percent, which also constituted the biggest rise since the height of the global economic and financial crisis in 2009. Enditem