Consumer prices in Germany rose at their highest rate in nine years in January, due to higher food prices and the impact of the introduction of euro notes and coins in the eurozone.

Inflation in January was 0.9 percent, putting the annual inflation rate at 2.1 percent.

Prices have been rising since the introduction of euro notes and coins in the beginning of the year, as vendors across the eurozone took advantage of the changeover to round their prices upwards. Last month, prices in Italy posted their highest rise in more than six years.

The rise in inflation may discourage the European Central Bank from lowering interest rates in the eurozone. European inflation was two 2.1 percent in December, still above the ECB's ceiling of 2 percent.

Some information for this report provided by AFP and Bloomberg.

Email this article to a friend
Printer Friendly Version