German inflation slows more than expected in October

​German inflation eased more than ​expected in October, ‌the first ​month of a government fuel tax cut, as lower prices at the pump helped ‌slow consumer price growth.

Inflation slowed to 2.8% year-on-year, preliminary data from the federal statistics office showed on Friday. Analysts polled by Reuters had forecast ‌the EU-harmonised consumer price index to come in at 3.1% in ‌October, compared with 3.3% in September.

The rise in energy prices slowed slightly in October, to 12.2%, from 14.9% in September. Core inflation, which excludes volatile food ⁠and ​energy prices, fell to ⁠2.1% from 2.4% the month before.

The fuel tax reduction, introduced at the ⁠start of October and due to remain in place until year-end, has ​led to a modest decline in fuel prices. The German data comes ⁠ahead of a euro zone inflation update due on Wednesday. Inflation in the ⁠bloc ​is expected to come in at 3.9% in October, slightly above September's 3.8%, according to economists polled by Reuters.

The European ⁠Central Bank left interest rates unchanged on Thursday but clearly hinted at ⁠another hike ⁠in December, with a warning that high and rising energy costs were fuelling inflation risks.