(Recasts with preliminary pan-German data)
By Paul Carrel
BERLIN, Nov 26 (Reuters) - German inflation fell a full percentage point in November, slowed by lower fuel costs and pointing to easing price pressures in the broader euro zone, preliminary data showed on Wednesday.
The headline consumer price (CPI) measure slowed to 1.4
percent from 2.4 percent, the Federal Statistics Office said. A
Reuters poll had pointed to CPI of 1.6 percent
The slowdown -- the fourth in a row -- was led by a drop in fuel costs, which fell by between 8.1 percent and 10.0 percent on the month in six states used to calculate the preliminary national data [ID:nLQ64549].
"This is good news," said Postbank economist Marco Bargel said after the earlier release of state data.
"Easing inflation is the best economic stimulus programme at the moment. It supports purchasing power," he added. "The weakness in exports could at least partly be compensated by stronger domestic demand."
Fading exports dragged Germany into its first recession in five years in the third quarter, official figures released on Tuesday showed.
The German data provide the first insight into inflation trends in the euro zone. Germany's price index makes up close to 30 percent of the overall gauge for the single currency area.
Slower German inflation could encourage the European Central Bank to loosen borrowing costs further to counter the threat of a lasting economic downturn. The ECB next meets on Dec. 4.
In comments published on Wednesday, ECB Governing Council member Ewald Nowotny told Japan's Nikkei newspaper that receding worries about inflation have made room for another ECB rate cut.
The ECB targets inflation of close to but below 2 percent over the medium term in the 15-member euro zone. A Reuters poll pointed to euro zone inflation, due on Friday, slowing to 2.4 percent in November from 3.2 percent in October.
Economists expected German inflation to ease further.
"Natural gas prices will soon fall as well," said Juergen Michels at Citigroup. "So the inflation rate will sink further in the coming months. I would not be surprised if it fell below the 1 percent mark on an annual average in 2009."
German prices fell by 0.5 percent on the month in November.
The EU-harmonised price index (HICP) showed prices fell by 0.5 percent on the month, with the annual measure easing to 1.5 percent from 2.5 percent in October.
German HICP had been expected to fall by 0.3 percent on the month. Prices were tipped to rise by 1.7 percent on the year.
(Additional reporting by Noah Barkin, Kerstin Gehmlich, Dave Graham and Erik Kirschbaum)