Germany’s annual inflation rate eased to 2.8% in October 2026, down from a near three-year high of 3.3% in September and below market expectations of 3.0%, according to preliminary estimates. The slowdown was mainly driven by softer price growth in energy (12.2% vs. 14.9% in September) and services (2.5% vs. 2.7%), while food inflation remained unchanged at 0.4%. Core inflation, which excludes energy and unprocessed food, also moderated to 2.1% from 2.4%. Meanwhile, the EU-harmonized inflation rate fell more than expected to 2.8%, although it remained above the European Central Bank’s 2% target.