The German annual inflation rate inched lower to 2.3% in October of 2025 from the year-to-date high of 2.4% in the previous month, but remained above market expectations of 2.2%, according to a preliminary estimate. Consumer prices slowed for goods (1.2% vs 1.4% in September) amid considerable disinflation for food (1.3% vs 2.1%) and a faster pace of deflation for energy (-0.9% vs -0.7%) due to lower fuel prices and ample natural gas stocks in the EU. In turn, services inflation inched higher (3.5% vs 3.4%), driving the core inflation rate to remain elevated at 2.8%. From the previous month, consumer prices rose by 0.3%.