Germany's service sector shifted into a higher gear at the start of 2018, as business activity growth accelerated to the fastest in nearly seven years and job creation also gathered pace, the latest PMI survey data from IHS Markit signalled.

The survey also showed a pick-up in inflationary pressures in January, with firms reacting to a sharp rise in costs by hiking prices charged to the greatest extent in nine-and-a-half years.

The seasonally adjusted final IHS Markit Germany Services PMI Business Activity Index rose to 57.3 in January, up from 55.8 in December (and also above the earlier 'flash' estimate of 57.0). It was the highest reading since March 2011.