German Inflation Set to Slow

Inflation in Germany looked set to slow this month, key regional data showed on Friday. In Germany's most populous state, North Rhine-Westphalia, the consumer price index (CPI) rose by 1.5 percent on a 12-month basis in January, slower than the 1.8 percent recorded in December, the regional statistics office in Düsseldorf said in a statement. In the eastern state of Saxony, the cost of living rose by 1.5 percent year-on-year this month, also slower than the 1.9 percent recorded in December, the regional statistics office in Kamenz said. Consumer price inflation also slowed in another eastern state, Brandenburg, where CPI rose by 2.0 percent on a 12-month basis in January, compared with 2.5 percent in December. The regional price data from six so-called indicator states -- Baden-Württemberg, Bavaria, Brandenburg, Hesse, North Rhine-Westphalia and Saxony -- are used to calculate preliminary pan-German inflation.