Germany’s consumer price inflation slowed sharply in October to hit the lowest in more than two years, final data from Destatis showed on Wednesday.
The consumer price index, or CPI, rose 3.8 percent year-on-year, following a 4.5 percent increase in the previous month. This was the lowest rate since August 2021 and matched the flash estimate published on October 30.
“Consumers are still feeling the higher food and energy prices, which have risen during the extended period of war and crisis”, said Ruth Brand, President of the Federal Statistical Office.
Core inflation that excludes prices of food and energy softened to 4.3 percent from 4.6 percent in the previous month.
Overall consumer prices remained unchanged on a month-on-month comparison, as initially estimated, after rising 0.3 percent in September. Inflation based on the EU measure of harmonized index of consumer prices, or HICP, slowed sharply to 3.0 percent, as estimated, from 4.3 percent in the previous month. On a monthly basis, the HICP dropped 0.2 percent, reversing a similar size rise in the previous month. Monthly inflation also matched the flash estimate.
The slowdown in overall inflation largely reflects the 3.2 percent decrease in the energy product prices. Meanwhile, food prices remained the main driver of inflation, which advanced 6.1 percent.
Goods prices grew 3.6 percent annually and services prices logged an annual increase of 3.9 percent.