German inflation picked up slightly in January, preliminary data showed Thursday, as the impact of a one-off energy subsidy the month before wore off.

A German baker retrieves loaves of bread from his oven at a bakery in Berlin on December 28, 2022. (Photo: AFP)

Consumer prices accelerated by 8.7 percent year-on-year, federal statistics agency Destatis said, up from 8.6 percent in December. Analysts surveyed by FactSet had expected a sharper increase of 8.9 percent.