According to the final report from the Federal Statistical Office (Destatis), in October, consumer prices rose by 2.0% per annum, as expected, after an increase of 1.6% per annum in September. Price growth accelerated for the first time since July. Inflation was particularly fuelled by the rise in food prices and ongoing above-average price increases for services. By contrast, the development of energy prices again had a dampening effect on the inflation rate. On a monthly basis, consumer prices increased by 0.4%, as expected, after remaining unchanged in September. It was the strongest increase since April.
The data also showed that in October, energy prices fell by 5.5% per year after declining by 7.6% per year in September. The prices of both household energy (-3.2%) and motor fuels (-8.9%) were down year on year. Price reductions were recorded for heating oil (-13.4%), firewood, wood pellets and other solid fuels (only in German) (-12.7%), electricity (-5.5%) and natural gas (-0.8%). By contrast, district heating was still considerably more expensive (+31.7%) than a year earlier. Food prices rose by 2.3% per year after an increase of 1.6% per year in September.
Meanwhile, the CPI excluding energy and food rose by 2.9% per year after increasing by 2.7% in September.
Destatis said that in October, the harmonized index of consumer prices (HICP) - an indicator that allows to compare inflation in Germany with inflation in European countries - rose by 0.4% on a monthly basis and by 2.4% per annum. In September, HICP fell by 0.1% m/m and rose by 1.8% per annum.