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3h ago

Germany Inflation Slips to 2.3% in October as Energy Prices Decline

Elevated services costs keep the core rate at 2.8%, suggesting lingering price pressure despite relief from cheaper energy.

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Ein Fahrgast steht im Hauptbahnhof vor einem Fahrkartenautomaten.
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Dienstleistungen haben sich im Oktober im Vergleich zum Vorjahresmonat deutlich verteuert, während die Lebensmittelpreise langsamer stiegen. Das Statistische Bundesamt in Wiesbaden bestätigte am Mittwoch seine erste Schätzung zur Inflation im Oktober.

Overview

  • Destatis confirmed final October figures at 2.3% year over year and 0.3% month over month, with the harmonized HICP also at 2.3%.
  • Service prices rose 3.5% from a year earlier, led by passenger transport up 11.4% and social services up 8.0%, while net cold rents increased 2.0%.
  • Energy was 0.9% cheaper than a year ago, with heating oil down 6.0%, electricity down 1.4% and district heating down 1.0%; natural gas rose 0.9% and motor fuels 0.4%.
  • Food prices were up 1.3% annually, with sharp divergences such as edible oils down 12.6% (olive oil down 22.7%) and butter down 16.0%, but chocolate up 21.8% and coffee up 21.3%.
  • Destatis made retroactive corrections to selected service subcategories for January to September without altering the overall CPI or HICP, and economists expect average 2025 inflation near 2.1% with rates potentially staying slightly above the ECB goal in the near term.