BERLIN, Jan. 12 (UPI) -- German inflation rose to an average 1.6 percent in 2004, the highest level over the last three years, Deutsche Welle reported Wednesday.
The year-end data report explained that the rise in inflation was due to an increase in tobacco taxes that were pushing up the cost of living in the eurozone's largest economy.
In December, the German consumer price index rose by 2.1 percent on a 12-month basis, marginally higher than the preliminary estimate calculated last month at 2.0 percent.
Last month's rise in inflation was up from November's 1.8 percent. Statisticians explained that higher prices in holiday packages, accommodations and tobacco taxes were the cause of the steep inflation.
Overall the consumer price inflation averaged 1.6 percent in 2004, making it the highest average annual rate of inflation since 2001, according to the federal statistical office. Consumer price inflation in 2003 was 1.1 percent, while it was 1.4 percent in 2002.
