”After two significant declines, German inflation rate rose again in October, from 1.6% to 2.0%. This is partly due to a higher year-on-year rates in the very volatile energy and food prices, but the core inflation rate has also increased. At 2.9%, it remains well above the ECB’s target of 2%, and in view of the continued strong rise in labor costs, it is likely to fall only slowly in the coming months.The fall of the German inflation rate below the 2% mark has proofed to be only temporary. According to the preliminary estimate of the Federal Statistical Office, it rose again in October from 1.6% to 2.0%. One contributing factor was the rising year-on-year rates for energy and food prices. But even the core inflation rate, which excludes these two often highly volatile subcomponents, rose in October from 2.7% to 2.9% after having fallen slightly in the previous months.”
Morten W. Langer
