Inflation in Germany fell to 2.8% in October — Der Spiegel

In Germany, annual inflation slowed to 2.8% in October 2026, compared with 3.3% in September. The decline was influenced by a government-introduced fuel discount, Der Spiegel reports, citing preliminary data from the Federal Statistical Office.

Reduction in fuel tax

From October 1 until the end of 2026, the energy tax on gasoline and diesel fuel was reduced by approximately 14 cents per liter. Including VAT, this was expected to provide consumers with savings of up to 17 cents per liter, according to the government.

This is already the second introduction of such a discount this year, despite criticism from experts. At the same time, high energy prices continue to be the main factor driving up the cost of living.

Energy is still becoming more expensive

Compared with October last year, fuel and household energy prices rose by 12.2%. Their rate of increase slowed: in September, it was almost 15%.

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Food prices in October were 0.4% higher than a year earlier. Services became 2.5% more expensive; this category includes, in particular, package tours and restaurant visits.

Experts do not expect sustained improvement

Commerzbank chief economist Jörg Krämer believes it is too early to speak of easing inflationary pressure. He forecasts that due to rising energy prices, which will gradually affect other goods and services, inflation may again exceed 3% around the turn of the year.

The German Bundesbank also expects energy costs to remain high despite the temporary fuel discount. In September, inflation in the eurozone reached 3.8%, the highest level in three years, while the European Central Bank's medium-term target is 2%.