German Federal Statistical Office (Destatis) official reports

German Inflation Eases to 1.6% in September, Below ECB’s 2% Target

Sep 30, 2024, 12:00 PM

German inflation has eased to 1.6% in September, down from 1.9% in the previous month and slightly below the forecasted 1.7%. The decline is attributed mainly to a sharp fall in energy prices, which dropped by 7.6%. However, food prices continued to rise, increasing by 1.6%. Core inflation, which excludes energy and food, eased slightly to 2.7% year-on-year. The preliminary data suggests a further slowdown in national inflation, which could bolster calls for the European Central Bank (ECB) to cut interest rates. Notably, German inflation dropped to 1.8% in September, below the ECB’s 2% target for the first time since February 2021.