German inflation eases slightly in October

Inflation in Germany eased slightly in October after topping a three-year high in September, official data showed Thursday, and seems to be peaking out.

The consumer price index for the eurozone’s largest economy rose 2.5 percent on a 12-month basis in October, compared with 2.6 percent in September, the national statistics office Destatis said in a statement.

On a monthly basis, the index was unchanged.

As in previous months, rising household energy costs, in particular for heating oil and gas, were the main factor behind the elevated level of inflation, it said.

Using the EU’s Harmonised Index of Consumer Prices or HICP, which is the European Central Bank’s inflation yardstick, the cost of living in Germany rose by 2.8 percent on a 12-month basis in October.

The ECB aims to keep inflation close to, but below 2.0 percent.

For UniCredit analyst Alexander Koch, the data indicated that consumer price inflation in Germany has reached its cyclical peak.

“Another temporary uptick in the short term cannot be ruled out but leading price indicators suggest an imminent turnaround in price dynamics,” Koch said.

He said he expected inflation to begin a downward trend at the end of the year.