German unemployment has fallen to a 14-year low of 8.4 percent of the workforce, according to unadjusted data from the Bundesbank. The positive jobless figure, combined with accelerated inflation in September, are seen as indicators of the health of the country’s economy.
The news from Europe’s largest economy could also increase chances that the European Central Bank will keep monetary policy tight. The number of unemployed people was down by 700,000 in one year.The data is positive news for Chancellor Angela Merkel’s coalition government which made cutting joblessness a priority when it took office in 2005.
Inflationary pressure in six federal states surpassed expectations as energy prices rose. Inflation in North Rhine Westfalia, the country’s most populous region, is at its highest in over six years.
Data from German states offer the first insight into inflation trends in the Eurozone.