German inflation picks up in November, Destatis estimates

German inflation improved in November, driven by an increase in food prices, according to an estimate from the Federal Statistical Office Destatis.

The consumer price index is expected to have risen 0.4% this month compared to a year ago, following a 0.3% gain in October. Versus a month ago, CPI is estimated to have climbed 0.1% in November after zero growth in October.

Destatis said the rise was driven by a 2.3% increase in food prices (1.6% growth in October) and an easing in the drop of energy prices to 7.5% from 8.6% the previous month.

The final estimate for November will be released on 11 December.

The European Central Bank is closely eyeing inflation in the euro-area closely as it prepares for its latest policy decision, to be announced on Thursday. Analysts expect ECB President Mario Draghi to announce further quantitative easing and a cut to the deposit rate to address prolonged low inflation in the Eurozone.