Inflation in Germany is increasing and exceeding expectations in October.

The data released by the Federal Statistical Office of Germany (Destatis) on Wednesday showed that the preliminary reading of the consumer price index in Germany was higher than market expectations for the month of October, registering the lowest reading since February 2021. According to the reported data, the inflation rate in Germany slowed to 2.0% in October on a year-on-year basis, which is higher than market expectations that indicated a rate of 1.8%. The previous reading had recorded a growth rate of 1.6%. At the same time, the annual core inflation rate in Germany experienced a greater increase in October, with preliminary data showing it hitting 2.4%. This was also below market expectations that indicated a rate of 2.1%, after the previous reading had shown core inflation rising in September to 1.8%. On a monthly basis, the data indicated that Germany experienced an increase in the consumer price index of 0.4% in October compared to September, while market expectations had indicated a growth of the consumer price index of about 0.2%, after the previous reading for September had shown stability in the consumer price index.