German Inflation Picks up Slightly in October

German inflation picked up slightly in October but still remained well below the European Central Bank’s target, raising expectations for further monetary stimulus.

Consumer prices measured according to common European standards were unchanged on the month in October, and rose by 0.2% on the year, the Federal Statistics Office said Thursday, confirming its preliminary estimate it published on Oct. 29.

In September, the harmonized CPI was -0.3% on the month, and -0.2% on the year.

Consumer prices calculated according to national standards were also unchanged on the month, but rose by 0.3% on the year in October, the statistics office Destatis said, also confirming its first estimate.

As has been the case in the previous months, energy prices in particular have put the index under downward pressure. Destatis said that energy prices fell by 8.6% on the year in October.

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.