Germany: Harmonized inflation comes in at highest level since our records began

Harmonized inflation increased to 11.6% in October, above September’s 10.9%. October's reading marked the highest inflation rate since our current records began. The print was broad-based as nearly all components registered stronger price increases. Prices for transport, however, rose at a softer pace, while alcoholic beverages and tobacco increased at a steady pace. Prices for communication dropped.

The trend pointed up, with annual average harmonized inflation coming in at 7.9% in October (September: 7.3%). Meanwhile, consumer price inflation rose to 10.4% in October, from the previous month's 10.0%.

Finally, harmonized consumer prices rose 1.15% in October over the previous month, down from the 2.18% rise recorded in August.

FocusEconomics panelist expect harmonized inflation to average 8.1% in 2022 and 5.5% in 2023.