Germany’s annual inflation rate eased to 2.8% in October 2026, down from a near three-year high of 3.3% in September, confirming preliminary estimates. The slowdown was attributed to the new fuel discount introduced at the beginning of October, which is set to remain in place until year-end. Energy inflation moderated to 12.2% from 14.9% in September, as price growth slowed for motor fuels (28.9% vs 37.1%), although heating oil inflation accelerated (84.5% vs 74.9%). Meanwhile, food inflation was unchanged at 0.4%, as higher prices for eggs (15.4%), fresh vegetables, including potatoes (11.5%), and fish, fish products and seafood (4.5%) were partly offset by lower prices for edible fats and oils (-9.1%, including butter: -18.9%), dairy products (-4.7%) and fresh fruit (-2.8%). Core inflation, which excludes energy and unprocessed food, eased to 2.1% from 2.4%. On a monthly basis, the CPI decreased by 0.2%, reversing a 0.6% rise in September.