BERLIN, Dec 29 (Reuters) - German annual inflation probably slowed for a fifth month running in December as fuel costs tumbled further, suggesting price pressures in the broader euro zone may have eased, data from the state of Saxony showed on Monday.
Annual inflation in the eastern state of Saxony slowed to 1.3 percent in December from 1.7 percent in November, figures from the state statistics office showed. Month-on-month prices were up 0.3 percent after falling 0.5 percent in November.
Data from German states often provide the first insight into inflation trends across the euro zone. Five other states are due to publish their December data on Tuesday.
A Reuters poll forecast Germany's national gauge of consumer prices (CPI), due to be published on Tuesday, would rise by 0.4 percent on the month, with the annual inflation rate expected to slow to 1.2 percent from 1.4 percent in November. The EU-harmonised price index (HICP) was also seen rising by 0.4 percent on the month. Prices were tipped to rise 1.2 percent on the year -- down from 1.4 percent in the previous month.
In Saxony, heating oil prices plunged 22.9 percent month-on-month in December while housing prices including rents, water, energy, gas and fuels fell 0.8 percent from November. Fuel for motor transport dropped 7.1 percent from November.