Business · Economy · 12 hrs ago
German inflation eases as fuel discount slows energy price rises
German inflation slowed in October, though experts say it is too soon to be reassured.
The temporary fuel discount, in place from October through December, helped slow the rise in energy costs.
Even so, consumers paid 12.2% more for fuel and household energy than a year earlier, compared with a rise of nearly 15% the previous month.
Food prices were up 0.4% and services, including package holidays and restaurant visits, cost 2.5% more than a year earlier.
The US-Iran conflict continues to drive up energy prices, and Germany’s central bank says they are likely to stay very high despite the discount.
Commerzbank’s chief economist expects inflation to rise above 3% around the turn of the year as higher energy costs feed into other goods and services.
The fuel discount is due to end after December, and experts expect inflation to remain elevated for now.
Germany’s inflation rate fell to 2.8% in October from 3.3% in September, according to preliminary data.
The renewed fuel-tax discount helped slow price increases, and inflation came in below experts’ expectations of 3.0%.
Energy prices were still 12.2% higher than a year earlier, although their rise eased from nearly 15% in September.
Economists warned that inflation could rise again as energy costs feed through to other goods and services.
The fuel-tax discount is due to run through the end of 2026, and the Bundesbank expects inflation to pick up when it ends.
- Who
- Consumers in Germany, the Federal Statistical Office and the German government.
- What
- Germany’s annual inflation rate fell to 2.8% in October, with the fuel-tax discount helping to slow price increases.
- When
- October 2026. The preliminary figures were reported on October 30.
- Where
- Germany.
- Why
- The renewed fuel-tax discount lowered fuel costs. Energy prices remained much higher than a year earlier.
This story does not have two clearly opposing sides.
Germany’s inflation rate rose to 3.3%, its highest level since December 2023.
The temporary fuel-tax discount took effect, lowering energy taxes on petrol and diesel.
Preliminary data showed annual inflation had fallen to 2.8%.
The German Federal Statistical Office published its preliminary estimate for October inflation.
- October inflation rate
- 2.8%
- September inflation rate
- 3.3%
- Energy prices
- Up 12.2% year on year in October
- Food prices
- Up 0.4% year on year in October
- Services prices
- Up 2.5% year on year in October
- Fuel-tax discount
- Scheduled to run through the end of 2026
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What people are saying
Um die Jahreswende wird die Inflation wohl wieder über drei Prozent liegen.