Inflation moderates in Germany and falls to 2.8%

BarcelonaGermany's headline inflation rate stood at 2.8% year-on-year in October, representing a relief of half a percentage point compared to the 3.3% increase in the cost of living in September, as confirmed by the Federal Statistical Office of Germany (Destatis). Likewise, Germany's harmonized inflation rate, used by Eurostat in its statistics, also recorded a decrease of five tenths in the tenth month of the year and stood at 2.8% year-on-year.

The inflation reading for October represents the lowest year-on-year price increase in the eurozone's largest economy since last July, and reflects the effect of the reduction in fuel tax, introduced at the beginning of the month and which will remain in effect in Germany until the end of the year.

"The inflation rate in October fell slightly below 3% again," highlighted Ruth Brand, president of Destatis. She added, however, that the persistently high inflation rate continued to be driven mainly by energy price trends, although "it is likely that the new fuel discount introduced at the beginning of October has moderated it." In this sense, the rise in energy prices moderated in October to 12.2% year-on-year from 14.6% in September, while food prices increased by 0.4%, in line with the rise of the previous month.

For its part, the cost of goods rose in October by 3% compared to the same month in 2025, eight tenths less than the increase in September, while services increased in cost by 2.5%, compared to 2.7% the previous month. Thus, core inflation, excluding energy and food, stood at 2.1%, three tenths below the September reading.