Germany's consumer price index (CPI) inflation rose 0.4 per cent month-on-month in October 2024 to 2.0 per cent, marking a recent increase after standing at 1.6 per cent in September and 1.9 per cent in August. According to the Federal Statistical Office (Destatis) report on Tuesday, German CPI inflation also surge 2.0 per cent year-on-year in October 2024. Destatis attributes the rise primarily to higher food prices and continued above-average price increases in the service sector. In contrast, energy prices, which had previously been a major factor in tempering inflation, continued to have a dampening effect but less so than in recent months. Consumer prices overall saw a 0.4 per cent rise compared to September 2024, indicating growing pressures on household budgets. Food prices surged by 2.3 per cent year-on-year in October 2024 compared to the same period in 2023, accelerating from increases of 1.6 per cent in September and 1.5 per cent in August. Energy product prices were 5.5 per cent lower in October 2024 compared to the same month a year earlier, a slowdown from the 7.6 per cent decrease observed in September. Excluding energy prices, the core inflation rate stood at +3.0 per cent in October 2024. Both rates have notably exceeded overall inflation since January 2024, thereby demonstrating that inflation was above average in other important product groups, the report added. Attribution: Destatis
