Germany’s annual inflation rate eased to 2.8% in October from 3.3% in September, while consumer prices fell 0.2% compared with the previous month. The slowdown in headline inflation has not brought relief across all household expenses, with energy and some food items still markedly more expensive than a year earlier.
Energy product prices were 12.2% higher year on year. Motor fuels remained 28.9% more expensive than in October 2025, although they fell 5.5% from September after a temporary fuel tax discount took effect on 1 October. Heating oil prices surged 84.5% year on year. Electricity was 5.2% cheaper and natural gas 1.2% cheaper.
Food prices rose by 0.4% overall. Eggs increased 15.4%, fresh vegetables including potatoes rose 11.5%, and fish and seafood were 4.5% more expensive. Butter prices fell 18.9%, while dairy products were down 4.7%.
Service prices increased by 2.5%. Social protection services rose 6%, vehicle maintenance and repairs 4.9%, and hairdressing and personal care services 4.4%. Net rents excluding heating were 1.9% higher year on year. Core inflation, excluding food and energy, stood at 2.1%.
Consumer prices fell 0.2% overall month on month, with energy prices down 2.1%. The latest figures point to a slower pace of price increases, but the sharp annual rise in fuel and heating oil costs shows why many households may not yet feel a broad-based improvement.
