German inflation eased to 2.8% in October, matching the forecast, while core price pressure cooled to 2.1% from 2.4%. Destatis said energy prices remained the main driver, even with a new fuel discount in place.
German inflation eased to 2.8% in October, as expected, according to final data released on Wednesday. The reading confirmed the provisional result from the Federal Statistical Office (Destatis).
Inflation had been 3.3% in September and 2.9% in August. Consumer prices fell 0.2% from September, in line with the forecast of -0.2%.
Core inflation cools more sharply
Inflation excluding food and energy was 2.1% in October, against 2.4% in each month from July to September. Excluding energy, inflation was 2.0%, and excluding heating oil and motor fuels it was 1.7%.
Service prices rose 2.5% from a year earlier, with net rents excluding heating expenses up 1.9%. Goods prices rose 3.0%, while food prices rose 0.4%, the same as in September.
Energy costs stay elevated
Energy prices were 12.2% higher than in October 2025, after a 14.9% rise in September. Motor fuels rose 28.9% year on year, versus 37.1% in September, and Destatis said the fuel discount in effect since Oct. 1 was likely to have dampened the increase.
Heating oil prices rose 84.5% from a year earlier, versus 74.9% in September. Electricity prices were -5.2% and natural gas excluding operating costs -1.2% versus a year earlier, partly due to federal government measures taken since the start of the year.
Destatis President Ruth Brand said inflation was "primarily driven by the development of energy prices", even though the new fuel discount is likely to have dampened it somewhat.
Source: Investing.com
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