German inflation grew by 3.8 per cent in December, dampening hopes of early interest rates cuts

Rise was slightly less than predicted by economists, while the figure for 2023 as a whole was 6 per cent

Joachim Nagel, Bundesbank president, advised traders speculating on an imminent reduction in borrowing costs to be ‘careful’ as ‘others have miscalculated before.’ Picture: Getty

German inflation increased in December but at a but at a slower rate than anticipated - in a posting likely to foster mixed predictions as to the European’s Central Bank’s attitudes to rate cuts.

Consumer prices rose by an annual 3.8 per cent, the statistics office said Thursday. That’s less than the 3.9 per cent predicted by economists, though up from 2.3 per cent in November. The reading for 2023 as a whole was 6 ...