German annual inflation eases to 2.8% in October,

Anadolu Agency -ISTANBUL

Germany’s annual inflation rate eased to 2.8% in October from 3.3 percent in September, matching preliminary estimates, the Federal Statistical Office (Destatis) said on Nov. 11.

Consumer prices fell 0.2 percent month-on-month, also confirming the initial reading.

Energy remained the main driver of inflation, although a new fuel discount introduced at the beginning of October likely helped contain price increases, Destatis President Ruth Brand said.

Energy prices rose 12.2 percent from a year earlier, slowing from September’s 14.9 percent increase, as developments in crude oil markets since the start of the Iran war continued to affect consumer prices.

Motor fuel prices climbed 28.9 percent annually, compared with a 37.1 percentrise in September. Heating oil prices, however, surged 84.5 percent, accelerating from 74.9 percent the previous month.

Electricity prices fell 5.2 percent year-on-year, while natural gas prices, excluding operating costs, declined 1.2 percent.

Core inflation, which excludes food and energy, eased to 2.1 percent in October after holding at 2.4 percent in each of the previous three months.

Food prices increased 0.4 percent annually, unchanged from September. Egg prices rose 15.4 percent, while fresh vegetables, including potatoes, climbed 11.5 percent. Butter prices dropped 18.9 percent.

Goods prices increased 3 percent from a year earlier, while services prices rose 2.5 percent. Net rents excluding heating expenses were up 1.9 percent.

On a monthly basis, energy prices declined 2.1 percent, with motor fuels falling 5.5 percent following the introduction of the fuel discount. Heating oil prices increased 4.6 percent.

Germany’s harmonized index of consumer prices, used for comparisons across the European Union, rose 2.8 percent annually and fell 0.1 percent monthly, also matching preliminary estimates.