Daily Management Review

German inflation in October falls to two-year low


Germany's consumer prices, adjusted to EU norms, rose by 3% annually in October, according to an early report released by the Federal Statistical Office of the nation (Destatis).

Josefine S.
Josefine S.
From 4.3% in September, inflation dropped precipitously and to its lowest level since June 2021.

According to Trading Economics, analysts' average price predictions for this month were a 3.3% increase.

In October, consumer prices decreased by 0.2% from the previous month.

German standards were used to compute prices, which increased 3.8% on an annualized basis following a 4.5% increase in September. After increasing by 0.2% in the previous month, the indicator remained constant on a monthly basis. Experts anticipated growth of 4% and 0.2%, respectively.

Core inflation, which does not include the price of food and energy, decreased from 4.6% to 4.3%.

Food costs increased by 6.1%, the lowest since February 2022 (a month earlier, by 7.5%), while energy prices dropped by 3.2%, the lowest since January 2021 (the index increased by 1% in September). After increasing by 4% in September, services saw an increase of 3.9%.

source: tradingeconomics.com