Despite this overall reduction, Ruth Brand, president of Destatis, pointed out that inflation remains high compared to medium and long-term figures. This is particularly evident in food prices, which saw a year-on-year increase of 7.5% in October. Within this category, sugar, jam, and honey prices experienced a significant surge of 13.4%.
Excluding volatile food and energy prices, the core inflation rate fell to 4.3% from September’s 4.6%. This shift supports the argument that the European Central Bank (ECB) may have reached the peak of its rate-hiking cycle, leading to speculation about when it will reduce its deposit rate from the current 4.0%.
These recent trends and figures align with preliminary estimates and a consensus among economists polled by The Wall Street Journal. The falling inflation rate suggests that the ECB could be nearing the end of its cycle of raising rates, a development that will be closely monitored by investors and policymakers alike.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
To read the full article, Click Here