German inflation at 10-year low: official

FRANKFURT: German inflation averaged 0.4 percent in 2009, its lowest level since the country was reunified in 1990, final figures released on Thursday by the national statistics office showed.

The figure confirmed an estimate first provided on December 29.

In 2008, consumer prices gained 2.6 percent in Europe's biggest economy, according to data provided by the Destatis office.

"The low year-on-year rate of price increase in 2009 was characterised mainly by price decreases for mineral oil products and food," a statement said.

Lower energy and food prices compared with peaks in 2008 have kept inflation down in Germany, while rising unemployment has also prevented unions from demanding substantially higher wages.

The last time inflation was anywhere near this low was in 1999 when it reached 0.6 percent, Destatis said.

Inflation even dipped briefly into negative territory in the middle of this year, reaching minus 0.5 percent in July, the lowest rate since 1987.

Across the 16-nation eurozone, inflation rose in December to 0.9 percent according to a flash estimate from the the Eurostat data agency, well below the European Central Bank's target of below but close to 2.0 percent.