Regional data from various German states indicates that the inflation rate is expected to decrease significantly in October, dropping from 3.3 percent in the previous month to below three percent.
For example, the annual inflation rate in North Rhine-Westphalia (NRW) declined from 3.3 to 2.7 percent, while Bavaria saw a drop from 3.2 to 2.8 percent, and Lower Saxony fell from 3.3 to 2.9 percent. Among the states that have already published their data, only Saarland-where the rate dropped from 3.8 to 3.3 percent-and Saxony-Anhalt-which fell from 3.4 to 3.0 percent-still registered an annual inflation rate of three percent or higher.
The primary reason for this downturn is attributed to the government’s “tank discount,” which became effective on October 1st. According to the respective state statistical offices, fuel prices decreased in several states compared to the previous month, even though they continue to rise significantly when compared to the same time last year.
The Federal Statistical Office is set to publish its estimate for October around 2 p.m. Based on the regional figures, analysts predict the average inflation rate for Germany will decline to between 2.7 and 2.9 percent, putting the overall average at 2.8 percent.
