Berlin - Annual German inflation slumped to a five-year low of 0.9 per cent in January, data confirmed Wednesday, as oil prices slumped on the back of slowing global demand.

The official figures released by the nation's statistics office confirm predictions made in late January.

Consumer prices dropped by 0.5 per cent from December 2008.

In particular, the cost of fuel and heating oil fell by 15.4 per cent compared to 2008. Energy prices dropped by an average 0.8 per cent.

This brings Germany's inflation rate to its lowest level since February 2004, when it reached 0.8 per cent. (dpa)