German inflation hits highest level since July 2013

Berlin

GERMAN inflation rose more than expected in December, hitting the highest level in more than three years, preliminary data showed on Tuesday, a welcome sign for the European Central Bank (ECB) that price pressures in Europe's biggest economy are pushing up.

Conversely, the surprisingly strong surge in consumer prices may put a damper on Germans' appetite for shopping as higher inflation means consumers have less real income to spend.