Consumer prices in Germany rose unexpectedly in November, reflecting price pressures in seasonal foods and the energy sector, data from Federal Statistics Office showed Friday.

Consumer prices in Europe's largest economy rose by 0.1% from the previous month and increased by 1.5% on a year-to-year basis in November, the statistics office, or Destatis, said.
That is the highest annual reading in two years. Economists had forecast the CPI to fall by 0.1% month-to-month and to rise by 1.3% year-to-year.
""The current increase was mainly driven by higher food and oil prices but prices in other sectors are gradually starting to pick up,"" said Carsten Brzeski, an economist at ING Bank. ""Ahead of the Christmas shopping season, prices for consumer and medium-term durable goods increased compared with last month.""
In October, consumer prices rose by 0.1% in monthly terms and increased by 1.3% in annual terms. ""Like in the previous months, the inflation rate is significantly influenced by strong price rises of heating oil and fuel, as well as by fruits and vegetables,"" Destatis said in a statement.
According to the European Union's harmonized methodology, the preliminary reading showed a rise of 0.1% month-to-month and 1.6% year-to-year, Destatis said.
Annalisa Piazza, an economist at Newedge, said the harmonized index of consumer-prices figure for Germany means ""we now see around 40% probability of a 2% HICP reading in the euro area.""
(Source: The WSJ)