Germany’s consumer price inflation rate is expected to climb to 5.2% year-on-year in November 2021, the highest rate since June 1992 and above market expectations of 5%, a preliminary estimate showed. The reading came in also well above the ECB’s target of 2%, adding to concerns about growing inflationary pressure in Europe’s largest economy due to ongoing supply issues and base effects, especially the temporary VAT reduction and the sharp decline in mineral oil product prices last year. Main upward pressure should come from energy products (22.1% vs 18.6% in October), food (4.5% vs 4.4%), and services (2.8% vs 2.4%). On a monthly basis, consumer prices are expected to fall 0.2% in November. The CPI, harmonized to compare with other European countries, was up 6.0% on the year and rose 0.3% month-on-month.