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German Cost of Living On the Rise

The cost of living in Germany has risen slightly in February, according to data released on Tuesday. Consumer prices in comparison to January rose 0.2 percent in the federal states of Saxony and Bavaria. The inflation rate in the two states was slightly weaker in February over the previous month, at 0.8 and 1.0 percent respectively, largely due to the strength of the euro. In general, travel became more expensive for Germans in February by some 10 percent. Alcohol, tobacco and health care also came with higher price tags. However, the prices for heating oil and food dropped. The mixed results are largely in line with what analysts had been predicting. "Price developments in Germany are fairly stable due to the weakness of the economy," Oliver Franz of the ING BHF Bank told Reuters.