German inflation hits two-year high

image captionGerman shoppers have seen food prices rise

Germany's inflation rate hit 1.5% in November, the fastest pace in more than two years, thanks to the increased cost of food and energy.

In September and October, the inflation rate had been 1.3%, according to the official figures from Destatis.

Despite the rise in prices, inflation remains below the 2% threshold the statistics agency sees as representing an unhealthy rise in prices.

It is also well below the UK's inflation rate of 3.2%.

Destatis said that the cost of energy showed an annual increase of 5% in November, while food prices rose by 3.4%, with vegetable and fruit prices up more than 10%.

With food and energy taken out of the calculation, inflation would have stood at 0.9%, it added.

Germany is currently the growth-engine in Europe, experiencing strong expansion when many of its neighbours' economies are struggling to recover from the downturn.

A recent survey suggested that business confidence in the country was at a 20-year high.

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