German inflation fell as expected last month giving some relief to the nation after a nightmare week of economic data.

The consumer prices index fell to 2.9pc in January, down from 3.7pc over the course of 2023.

The inflation figures cap off a tumultuous week of economic data for Europe’s largest economy.

Germany’s construction sector suffered some of its worst declines on record in January, while its private sector services businesses suffered their worst performance in five months.

German industrial production fell for a seventh straight month in December, official data showed, marking its longest series of declines since the period after reunification in the early 1990s.

Figures also showed that in 2023, German house prices suffered their steepest decline in 60 years as higher interest rates hammered home buyers.

Meanwhile, Ford has agreed with union chiefs to cut about 2,700 jobs from a German plant as it switches electric vehicle production to Spain.

Read the latest updates below.