German official inflation stable at 1.3 percent in October

27th October 2010, Comments 0 comments

German inflation was stable in October at 1.3 percent, provisional official data showed on Wednesday.

On a monthly basis, consumer prices in Germany, Europe's biggest economy, rose by 0.1 percent, the Destatis statistics office which published the data added.

"As in the previous months, the year-on-year rate of price increase is mainly determined by the sharp price rises for heating oil and motor fuels and for fruit and vegetables," a statement said.

The final figure for October is to be released on November 9, it added.

"So far we do not expect a drastic increase in consumer price inflation next year" either, UniCredit economist Alexander Koch said.

"Wage demands in Germany are pointing north, but especially as a substantial part of wage contracts has already been agreed on, wage inflation won't be excessive," Koch added.

"In addition, the recent euro strength will help to dampen import prices in the months ahead," he concluded.

© 2010 AFP

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