Germany's Sluggish Inflation in December After ECB Bond-Buying Scheme Ended

Inflation in Germany has been sluggish in December as the European Central Bank ended the bond purchase program for four years to resolve the crisis and plunge in the global market.

The annual inflation shows a drop to 1.8 percent in December from 2.4 percent in the previous month according to preliminary regional statistics office data released on Friday.

At a second populated area in Bavaria, the annual inflation was at 2.2 percent from 2.7 percent previously followed by Baden-Wuerttemberg with annual inflation declined to 2.0 percent from 2.7 percent. The data may not be in line with other eurozone nations with the data expected at 13.00 GMT.  

A survey prior to the publication of the regional data tells a sluggish consumer price inflation (HICP) rate to 1.9 percent from 2.2 percent in November.

As a precautionary act, the ECB ended its 2.6 trillion euro bond-buying program earlier this month but assures to keep stimulus for years amid the unexpected slowdown and political concerns.

The ECB intends to keep the inflation close to the target of 2 percent but still below this figure on Thursday. According to the bank, the global economy is anticipated to slow down in 2019 and move steadily after but prices are anticipated to increase.

On January 4, the preliminary inflation data from the eurozone will be released. The headline data forecast will be a drop to 1.8 percent from 1.9 percent in November.