Overview

• Destatis confirmed headline inflation at 2.4% year over year in September, up from 2.2% in August, with prices 0.2% higher on the month.
• Service prices climbed 3.4% from a year earlier, led by transport bundles, social services, insurance, auto repairs and steady rent increases.
• Energy was 0.7% cheaper than a year ago as household energy fell, though fuel and natural gas edged higher, weakening energy’s dampening effect.
• Core inflation excluding food and energy ticked up to 2.8%, signaling persistent domestic price pressures beyond volatile components.
• Food prices were 2.1% higher than a year earlier, with sharp divergences such as chocolate up 21.2% and olive oil down 22.6%, and ECB analysis shows food costs about 37% above 2019 levels.