Germany: inflation confirmed at 2% year-on-year in October – 12/11/2024 at 09:00

Inflation in Germany started to rise again in October after reaching its lowest level since February 2021, driven in particular by price increases in food and services, according to final data published on Tuesday.

The consumer price index increased by 2% year-on-year, or 0.4 points more than in September, said the Destatis statistics institute. Prices increased by 0.4% over one month.

In the midst of a cycle of reductions in the European Central Bank’s key rates, the inflation rate has risen again, after falling below 2% during the two previous months, September 2024 (+1.6%) and August 2024 (+1.9%).

In October, food prices increased by 2.3% compared to the same month of the previous year, with a particularly notable increase for edible fats and oils (39.7% for butter and 28.1 % for olive oil). Consumers also paid more for fruits (+4.2%) and vegetables (+3.2%).

On the other hand, the evolution of energy prices continued to slow inflation, but less strongly than in previous months (-5.5% in October after -7.6% in September).

Inflation excluding food and energy, closely monitored by the ECB, was 2.9% year-on-year in September, remaining well above headline inflation.

Prices of services, a labor-intensive sector, increased by 4.0% in October year-on-year, after 3.8% in September, which remains significantly higher than overall inflation.

In the euro zone, inflation increased to 2% in October year-on-year, driven by food prices, after reaching its lowest level in three and a half years the previous month.