German Inflation Slows to 2.8% in October as Core Inflation Eases
Key Facts
German inflation, measured by the harmonised consumer price index, slowed to 2.8% year on year in October 2026, according to a preliminary estimate published by the Federal Statistical Office, Destatis. The index fell 0.1% from September, the office said. Germany’s consumer price index also fell 0.2% month on month, according to the preliminary estimate. The readings show prices in Europe’s largest economy rising more slowly year on year, alongside monthly declines in both indices. The data provided do not include a documented market forecast against which to compare the reading.
The clearest easing was in core inflation, which excludes food and energy: it fell to 2.1% year on year in October from 2.4% in each of July, August and September, according to Destatis. This measure offers a view of the price trend away from those two volatile components, while October’s data remain preliminary. Among the components, services price growth slowed to 2.5% year on year from 2.7% in September. Goods price growth also slowed, to 3.0% from 3.8% in the previous month. The declines in both rates indicate that annual increases in services and goods prices eased between September and October.
Energy prices continued to rise, but at a slower pace: 12.2% year on year in October, down from 14.9% in September, according to preliminary Destatis data. This component remains elevated compared with the pace of services and goods price increases in October. That comes as headline inflation in the euro area exceeds the European Central Bank’s 2% medium-term target, Reuters reported. The agency said the increase was “concerning” and would strengthen calls for higher interest rates. It added that the limited rise in core inflation suggests energy costs have not yet had broad second-round effects.
The German price reading follows gross domestic product growth of 0.2% in the third quarter compared with the second, adjusted for prices, seasonal and calendar effects, according to Destatis. Year on year, GDP rose 1.2% after price and calendar adjustment, compared with the third quarter of 2025. The growth data provide economic context alongside the preliminary inflation estimate, but do not change the fact that October’s reading may be revised. The office said final results for Germany’s consumer price index and harmonised index for the same month will be released on 11 November 2026. Once published, the final figures will allow the preliminary monthly and annual inflation estimates to be reviewed.
Other upcoming dates include German central bank President Joachim Nagel’s participation in a monetary policy discussion in the German parliament on 2 November, according to the Bundesbank’s schedule. The schedule lists a public speech by Nagel at a bank event on 3 November titled “Courage for More Europe”. The preliminary estimate for euro area inflation in October is also due on 4 November, according to the Eurostat date included in the draft correction. The European Central Bank Governing Council’s next monetary policy meeting is scheduled for 17 December in Frankfurt, followed by a press conference. The direction of the interest rate decision will depend on the council’s assessment of euro area inflation, while the current German reading shows only a preliminary easing in October.