German Inflation Lowest Since February 2021

(RTTNews) - Germany's consumer price inflation eased further in September to the lowest level in just over three-and-a-half years, provisional data from Destatis showed on Monday.

The consumer price index registered an annual increase of 1.6 percent in September, slower than the 1.9 percent rise in August. Economists had expected inflation to ease to 1.8 percent.

Further, this was the lowest inflation rate since February 2021, when prices had risen 1.5 percent.

The downward trend in inflation was largely driven by a 7.6 percent plunge in energy prices. Meanwhile, food price inflation rose slightly to 1.6 percent from 1.5 percent.

On a monthly basis, consumer prices remained flat in September, versus an expected increase of 0.1 percent.

Inflation, based on the harmonized index of consumer prices, also decelerated to 1.8 percent in September from 2.0 percent a month ago. The expected rate was 1.9 percent. Monthly, the HICP dropped 0.1 percent.