Inflation in Germany accelerated to a record 11.6% in October

According to the data of the German Federal Statistical Office Destatis, consumer prices, harmonized with EU standards, increased by 11.6% in annual terms in October. Thus, the inflation rate accelerated compared to 10.9% in September and updated the historical maximum.

On a monthly basis, prices rose by 1.1% after a 2.2% jump in September. The dynamics of both indicators coincided with the previously announced data and the average forecasts of analysts.

Consumer prices, calculated only according to German standards, increased by 10.4% in annual terms in October and by 0.9% in monthly terms. Both indicators also coincided with forecasts and preliminary data.

Analysts called the sharp rise in energy prices as the main reason for high inflation. In addition, there is also a noticeable increase in food prices in the country. 

In particular, energy resources soared in price by 43% y/y (after an increase of 43.9% in September). Electricity has risen in price by 55%, and natural gas prices have more than doubled. Food prices rose by 20.3% (in September – by 18.7%). Excluding food and fuel, consumer prices in Germany increased by 5% y/y.