Germany: October harmonized inflation comes in at highest level since our records began
Harmonized inflation came in at 11.6% in October, up from September’s 10.9%. October’s reading was the highest inflation rate since our current records began. The print was driven by greater food price pressures, while energy price inflation eased but remained elevated. Services price inflation accelerated in the month.
Annual average harmonized inflation rose to 7.9% in October (September: 7.3%). Meanwhile, consumer price inflation rose to 10.4% in October, from September’s 10.0%.
Finally, harmonized consumer prices increased 1.15% from the previous month in October, which was below the 2.18% increase seen in September.
Carsten Brzeski, global head of macro at ING, commented:
“Looking ahead, the peak of German inflation will probably come at the turn of the year but it will take until next spring before inflation drops into single-digit territory again. The recent drop in wholesale gas prices will hardly affect the short-term inflation outlook and may only bring relief later in 2023.”