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Last Updated: Friday, 10 March 2006, 08:54 GMT
German inflation still above 2%
German car plant
German exporters are enjoying better times
German inflation remained above 2% in February, the target level set by the European Central Bank.

Consumer prices were flat at 2.1% on an annual basis although, month-on-month, they rose 0.4% from January.

In better news for the German economy, the country's monthly trade surplus widened to 12.5bn euros (8.5bn) in January from 9.2bn euros in December.

Exports rose 3.3% to 68.6bn euros, evidence of a general economic upturn, while imports rose 3% to 56.1bn euros.

There have been mixed indicators about the strength of Germany's economic recovery in recent weeks.

While business confidence is at a five-year high and unemployment has fallen in 10 out of the last 11 months, consumer spending remains weak.

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