Excluding the higher cost of energy, the inflation rate had been 1.6 percent. Bundesbank chief jens weidmann sees no danger of inflation in the short term and expects no more than 2 percent inflation for germany in the coming year, as he told the "rheinische post" (saturday).
"There is no immediate cause for concern about higher inflation," he told the newspaper. This was due to the recession in many european countries and the slowdown in global economic growth. "This is steaming the upward price trend," says weidmann. In the longer term, however, vigilance is called for. "Technically, the ECB’s governing council is in a position at any time to reverse the expansionary monetary policy. But we must also have the political strength to do this," he emphasized.
In germany, prices for heating oil (up 11.3 percent) and district heating (8.2 percent) in particular rose sharply in october compared with the previous year. The price increases for electricity and gas were more moderate, at just over three percent each. Fuels increased in price by 5.4 percent. Overall, energy prices in october were 5.5 percent higher than a year ago. Compared with september, however, the cost of energy fell slightly by 1.1 percent. This ensured a stable overall level of consumer prices within the space of a month.
While utility costs for electricity and gas increased over the year, rents remained rather unaffected by the constant inflation. Net rents rose 1.1 percent, slightly slower than consumer prices overall.
Food, on the other hand, became significantly more expensive. Food prices have risen by 3.3 percent since october 2011. Consumers had to dig deeper into their pockets, particularly for fruit (up 7.9 percent) and vegetables (7.3 percent). Eggs and dairy products, on the other hand, fell by 2.8 percent, while butter became 15.4 percent cheaper.