German inflation accelerates

BERLIN: Data from several German states suggests overall German consumer inflation inched up in November, as the economy and labour market boomed -- supported by loose euro zone monetary policy -- and food and fuel costs rose.
The figures, which will be followed by national inflation data due at 1300 GMT, prompted investors to pile into German government bonds in the expectation that rising prices will lead the European Central Bank to reduce stimulus.
Early data from the states of Saxony and Hesse showed year-on-year inflation hitting 2 percent, while figures from the states of Brandenburg and Bavaria showed inflation picking up.
In Germany´s most populous state, North Rhine-Westphalia, annual inflation accelerated to 1.8 percent from 1.6 percent in October. German 10-year government bond yields were 2 basis points higher at 0.36 percent and most other euro zone bond yields were also higher by 1-2 basis points on the day.