Germany unhappy at 3.1-pct inflation in November

Dilshan Wirasekara, Chief Executive Officer of First Capital Treasuries PLC

BERLIN, Dec 14, 2007 (AFP) – Inflation hit 3.1 percent in Germany, the biggest eurozone economy, last month, final figures released Friday by the national statistics office showed. Consumer prices rose by more than an initially estimated 3.0 percent, to reach their highest increase since January 1994, the Destatis office said.

On Thursday, European Central Bank governing council member Guy Quaden said the ECB is “seriously concerned” about inflation in the 13 nations that share the euro.

“The current situation is not satisfactory with regards to the inflation rate and the prospects for the short term too are not satisfactory,” said Quaden, who is also governor of the National Bank of Belgium.

Record oil prices helped lift eurozone inflation to a six-year high in November of 3.0 percent, well above the ECB’s preferred level of close to but less than 2.0 percent. The bank has warned repeatedly that surges in the prices of oil, commodities and food might lead to wage increase demands that would set a foundation for structurally higher inflation.