German inflation hits lowest level in over 2 years: Destatis-Xinhua

German inflation hits lowest level in over 2 years: Destatis

Source: Xinhua| 2023-10-31 00:34:15|Editor: huaxia

BERLIN, Oct. 30 (Xinhua) -- Price pressure in Germany continues to ease, with inflation in the country dropping to 3.8 percent in October, according to preliminary figures released by the Federal Statistical Office (Destatis) on Monday.

Following a first significant drop to 4.5 percent in September, in October inflation in Europe's largest economy hit the lowest level since August 2021, Destatis said. Previously, inflation in Germany had been normalizing more slowly than in other European countries.

Despite weakening further to 6.1 percent, food prices remained the main driver of inflation. Prices for energy, on the other hand, fell for the first time in almost three years, down by 3.2 percent. This had a "particularly dampening effect," Destatis said.

In its recently published fall forecast, the German government expects inflation to drop to 2.6 percent in the coming year, before hitting the European target of 2 percent as early as 2025.

"The inflation-related losses in household purchasing power are increasingly being overcome and, in conjunction with significantly rising wages and a robust employment situation overall, are leading to a revival in private consumption," the Ministry for Economic Affairs and Climate Action (BMWK) noted.

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