Germany – Gasoline rebate pushes inflation rate down
The German inflation rate (national definition) fell significantly in October, from 3.3% to 2.8%.
Dr. Ralph Solveen
Commerzbank Economic Research
10/30/2026
This is partly due to lower energy prices. Fuel prices have dropped noticeably as a result of the temporary reduction in the energy tax levied on them. However, the core inflation rate excluding energy and food is also likely to have declined in October from 2.4% to 2.1%. This trend is unlikely to prove sustainable, however. Instead, the inflation rate is expected to rise again soon.
Inflation rate falls below 3% again in October, ...
Good news for private households in Germany: The inflation rate has dropped significantly from 3.3% in September to 2.8% in October. Part of this decline is attributable to the so-called “gasoline rebate.” Because of the temporary reduction in the tax on fuels, their prices have fallen. But the core inflation rate excluding energy and food, whose prices also often fluctuate sharply, has also declined from 2.4% to 2.1%.
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