FX.co ★ German Inflation Rate Confirmed at 2.3%

Germany experienced a moderation in consumer price inflation, which reduced to 2.3% in October 2025, aligning with initial estimates and slightly lower than the 2.4% recorded in September. The inflation rate for goods saw a marginal decrease, registering 1.2% compared to September’s 1.4%, largely due to a deceleration in food prices, which fell to 1.3% from 2.1% previously. This easing occurred even though there were significant hikes in the prices of specific food items such as fruit (up 3.1%), sugar and confectionery (up 8.2%), as well as meat and meat products (up 4.3%). The energy sector witnessed a more pronounced price decline, with rates dropping by 0.9%, a sharper fall from September's 0.7%, driven by notable reductions in heating oil (down 6.0%) and electricity (down 1.4%). In contrast, inflation in the services sector edged up to 3.5% from the prior 3.4%, propelled by substantial increases in costs for passenger transport and social services, rising by 11.4% and 8.0%, respectively. Core inflation, which does not account for food and energy prices, held steady at 2.8%. On a month-to-month basis, consumer prices saw a growth of 0.3%, succeeding a 0.2% climb in September. Additionally, the EU-harmonised inflation rate decreased to 2.3% annually, down from 2.4%, while posting a 0.3% increase month-to-month, compared to a 0.2% rise in September.