German inflation rate drops to 3.0% in October, the lowest in 2 years

Posted on November 3, 2023   |  

In October, there was a noticeable drop in inflation in Germany, reaching the lowest point since August 2021, indicating a slowdown in the overall rise in prices across the eurozone.

Specifically, Germany's inflation rate for October stood at 3.0%.

When compared to other European Union countries, consumer prices in Germany increased by 4.3% year-on-year in September.

Core inflation, which excludes the prices of volatile items like food and energy, decreased to 4.3% in October, down from 4.6% in the previous month.

While overall inflation is expected to continue decreasing in the first few months of the coming year, core inflation is likely to stabilize at around 3%, possibly by spring.

Central bankers are keeping a close eye on higher-than-expected inflation, as it might lead to the need for extended periods of higher interest rates, presenting one of their key challenges.