German consumer prices edge higher in October

German inflation edged higher in October but remained below the European Central Bank’s target, figures released on Thursday showed.

According to the country’s statistical office, the CPI rose 0.3% year-on-year in October, in-line with analysts’ expectations and unchanged from the previous month.

Both core and headline components contributed to the increase. Household energy prices retreated by 6.5% year-on-year, less than the 7% decline seen in the previous month. Food inflation was also higher, jumping by 1.6% after an advance of 1.1% in September, said Claus Vistesen at Pantheon Macroeconomics.

The harmonised consumer price index (CPI) was flat versus the previous month and rose by 0.2% year-on-year, also in line with expectations and up from the 0.2% year-on-year drop it registered in the month before.

"Core inflation was pushed higher by increases in inflation of clothing, leisure and entertainment and household goods, and we think more upside is in store in coming months, given core inflation’s usual lagged relationship with the business cycle," Vistesen added.