Inflation in Germany has risen to a ten-year-high in October, figures published on Tuesday by the Federal Statistical Office showed.
According to the Wiesbaden-based government agency, consumer prices were up by 2.5 percent in October 2018 compared to the same period last year. A higher inflation rate was last measured in the eurozone's largest economy back in September 2008 (plus 2.8 percent) shortly after the outbreak of the global financial crisis. On a monthly basis, average prices rose by 0.2 percent in October.
The Federal Statistical Office explained that the latest uptick in German inflation was largely driven by an increase in energy costs (plus 8.9 percent compared to October 2017). Heating oil was 39.9 percent more expensive, while fuel prices rose by 14.8 percent. Back in September and August, consumers already witnessed steep increases in average energy costs of 7.7 and 6.9 percent respectively. Excluding the energy category, the overall inflation rate in October would have only been measured at 1.7 percent.
Food prices rose again as well by 1.9 percent, after a 2.8 percent annual increase recorded in September. The relatively slower pace in the increase of nutrition-related costs was attributed to a spike in prices recorded last year in October. By contrast to energy and food, electronic entertainment products (minus 4.7 percent) and telephones (minus 3.3 percent) both cheapened during the period under scrutiny.
Overall, prices in the broader category of consumer goods rose by 3.2 percent on average compared to October 2017. Increases in the cost of services in Germany were less marked at 1.8 percent. While rental prices shouldered by tenants were up by 1.6 percent, the price of airfare declined by an annual 2.3 percent.
The European Central Bank (ECB) sets an official inflation target of close to but below two percent for members of the eurozone single currency area. The German ministry for the economy has recently predicted in its autumn forecast that average inflation in Germany would be measured at 1.7 percent in the course of the current year of 2018.
