Markets slip as German inflation hits 0.2%

Markets slip as German inflation hits 0.2%

European markets fell slightly in early trading as German inflation continued to decline to 0.2 per cent in December, its lowest level since October 2009 when the figure was zero.

The figures from the Federal Statistical Office also noted the annual average consumer price inflation in 2014 was 0.9 per cent continuing the decline that has taken place since 2011.

It noted a major factor in the inflation figures was the decline in energy prices, as the figures showed the CPI rate in December excluding energy prices was a healthier 1 per cent.

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But with the eurozone inflation figures expected later this morning, markets have dipped on the news with the FTSE EuroFirst300 index falling 0.36 per cent in early trading, while the Dax index in Germany slipped 0.24 per cent and the FTSE 100 index dropped 0.38 per cent.