Germany: Inflation eases somewhat in October
October 27, 2011
In October, consumer prices remained unchanged over the previous month, according to a preliminary flash estimate released by the Federal Statistics Institute (Destatis). The monthly reading contrasted both the 0.1% increase observed in September and market expectations of a 0.1% increase. Annual inflation inched down from 2.6% in September to 2.5% in October. According to the Institute, inflation in October was driven by elevated energy prices. At the current level, inflation continues to linger above the European Central Bank's inflation target of ?below but close to 2%.? HICP inflation followed suit and dropped from 2.9% in September to 2.8% in October. A complete and more detailed inflation data set will be published on 10 November. The Bundesbank projects that inflation will average 2.5% this year, before moderating to 1.8% in 2012.
Author: Ricardo Aceves, Senior Economist