Germany’s annual inflation rate slowed to 2.8% in October 2026, down from 3.3% in September — a near three-year high — and below market expectations of 3.0%, according to preliminary estimates. The deceleration was largely driven by weaker price growth in energy (12.2% vs. 14.9% in September) and services (2.5% vs. 2.7%), while food inflation held steady at 0.4%. Core inflation, which excludes energy and unprocessed food, also eased, declining to 2.1% from 2.4%. Meanwhile, the EU-harmonized inflation rate dropped more than anticipated to 2.8%, though it remained above the European Central Bank’s 2% target.