Germany

German inflation in October was estimated at 3.8 percent, according to a preliminary statement on Monday afternoon. In September, by comparison, inflation stood at 4.5 percent. One explanation is that activity in the German economy has slowed down significantly in the course of 2023. “This can also be seen in weaker consumption and slowing job growth. Thus, inflationary pressures in the German economy have naturally subsided,” Tore Stramer, chief economist at the Danish Chamber of Commerce, wrote in a commentary. According to Stramer, the sharp fall in German inflation helps support the message that the European Central Bank (ECB) has finished raising interest rates. The door has even been opened for a possible interest rate cut in the first three months of next year, he estimates. /ritzau/