BERLIN, Oct. 30 (Xinhua) -- Germany's inflation rate eased to 2.8 percent in October after rising for three consecutive months, official data showed Friday, as energy price increases slowed following the introduction of temporary fuel tax cuts.
The decline came after inflation reached 3.3 percent in September, its highest level in nearly three years, driven largely by a sharp rise in energy costs, according to the Federal Statistical Office (Destatis).
Energy prices rose 12.2 percent year-on-year in October, easing from a 14.9-percent surge in September, the sharpest rise since February 2023.
The slowdown in energy price increases followed the introduction of temporary fuel tax cuts by the German government on Oct. 1, with the measures set to expire at the end of the year. Analysts had previously estimated that the tax cuts would lower Germany's October inflation rate by 0.3 percentage points.
Despite the easing in inflation, economists warned that price pressures could intensify again in the coming months as elevated energy costs continued to weigh on Europe's largest economy.
A survey released Friday by the Munich-based ifo Institute showed more German companies were planning to raise prices, with its price expectations index climbing to 25.9 points in October from 23 points in September.
"Companies are responding to the sharp increase in prices for crude oil and natural gas, which reached their highest level in the second half of October since 2022," said Timo Wollmershaeuser, head of forecasts at ifo, who warned both producer and consumer price inflation would rise further in the coming months.
Carsten Brzeski, global head of macro at ING Research, said that the start of the winter heating season, combined with low gas storage levels in Germany, was likely to push up gas prices further in the coming weeks.
Brzeski expected headline inflation to rise again and remain above 3 percent towards the end of this year and in early 2027.
The German government also expects inflationary pressures to persist. In its autumn forecast released earlier this month, it projected an average inflation of 2.7 percent in 2026, up from 2.2 percent in 2025, before rising to 3 percent in 2027.
