German inflation eased in October

Consumer prices rose by 2.3 percent on an annual basis in Germany in October, according to the final calculation by Destatis, which is consistent with preliminary data. Inflation was 2.4 percent in September and 2.2 percent in August.

“After two consecutive increases, the inflation rate fell slightly again in October”– commented Ruth Brand, President of Destatis, on the report. “Inflation continued to be driven by above-average price increases in services.”

Energy prices fell by 0.9 percent in October year-on-year after a 0.7 percent decrease in September. The price of household energy fell by 1.7 percent, of which heating oil fell by 6.0 percent, electricity by 1.4 percent, and district heating by 1.0 percent. Within household energy prices, the price of natural gas increased by 0.9 percent, and the price of firewood and other fuels increased by 2.5 percent. The price of fuels increased by 0.4 percent in one year.

Food prices were 1.3 percent higher in October than a year earlier, the rate of price increase slowed down, as it was still 2.1 percent in September. The last annual price increase that was lower than in October was registered in January, when it was 0.8 percent.

The price of services increased by 3.5 percent on an annual basis in October, after 3.4 percent in September. The prices of passenger transport (11.4 percent) and services of social institutions (8.0 percent) increased primarily. Compared to the previous year, prices for inpatient care (6.5 percent) and vehicle maintenance and repair (5.3 percent) also increased significantly.

Commodities rose by 1.2 percent on an annual basis in total, after 1.4 percent in September. The price of consumer goods rose by 1.3 percent and that of durable consumer goods by 1.0 percent.

Consumer prices excluding energy and food prices (core inflation) rose by 2.8 percent in October, the same rate as in September. Excluding energy prices, consumer prices rose by 2.5 percent in October and by 2.7 percent in September.

In one month, consumer prices also rose by 0.3 percent in October, in line with preliminary data, after a 0.2 percent monthly increase in September. Fuel prices rose by 0.5 percent in October compared to September. Food prices remained unchanged on a monthly basis, but the price of butter fell by 10.0 percent and the price of apples by 6.5 percent. Compared to the previous month, the price of airline tickets rose the most in October, by 19.4 percent.