German Inflation Falls to Lowest Level Since 2021

Germany's inflation rate dropped to 1.6% in September, driven by significant decreases in energy costs and slight increases in food and services prices.

• Germany's Federal Statistical Office reported a 1.6% year-on-year increase in consumer prices for September, the lowest rate since February 2021.
• Energy prices saw a significant decrease of 7% compared to the previous year, contributing to the overall decline in inflation.
• Food prices rose by 1.6%, aligning with the overall inflation rate, while services costs increased by 3.8%.
• Core inflation, which excludes volatile food and energy prices, slightly dipped from 2.8% in August to 2.7% in September.
• Economists expect inflation to continue its downward trend, potentially allowing the European Central Bank more flexibility in adjusting interest rates.

3 Articles

Deutsche Welle CNBC