German Inflation Rises to 2% in October, Driven by Food and Services

The unexpected increase ends a trend of declining inflation rates, with significant price hikes in key sectors.

Consumer prices in Germany rose by 2% in October compared to the same month last year, marking an end to the recent trend of declining inflation.
Food and services were the main contributors to the inflation rise, with food prices increasing by 2.3% and services by 4% year-over-year.
Energy prices dropped by 5.5% over the year, providing some relief amid the overall price increases.
The core inflation rate, which excludes volatile items like food and energy, climbed to 2.9%, indicating underlying inflationary pressures.
The German government forecasts a decrease in the average inflation rate to 2.2% for the year, down from 5.9% in 2023, aligning with the European Central Bank's target.