Inflation in Germany slowed in September to the lowest since Russia invaded Ukraine, the country’s statistics office said Thursday.
The Federal Statistics Office said the consumer price index slowed to a year-over-year rate of 4.5%, down from 6.1% in August. Excluding food and energy, the core rate slowed to 4.6% from 5.5%.
On a EU-harmonized basis, German inflation was 4.3%, two-tenths below economist expectations.
Energy price inflation slowed to 1%, compared to a month in 2022 when its fuel discount expired. Russia’s invasion ended a cheap source of gas for Germany’s industrial base.
The slowing down in German inflation may influence the European Central Bank to end its campaign of interest-rate hikes.
The yield on the 2-year German bund
BX:TMBMKDE-02Y
rose 4 basis points, to 3.29%, though it was off the highest levels of the day.
Germany’s economic troubles have rekindled debate about whether it’s the sick man of Europe.
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