Amid fuel tax cut, German inflation slows
German inflation slowed more than expected in October, the first month of a government fuel tax cut, adding to evidence that Europe's largest economy could prove more resilient than anticipated despite disruptions linked to the war in Iran. Gross domestic product increased slightly more than expected in the third quarter, though economists warned the expansion remained heavily reliant on government spending. Inflation eased to 2.8 percent year-on-year in October from 3.3 percent the month before, preliminary data from the statistics office showed on Friday, below forecasts for 3.1 percent. Easing energy price rises drove the slowdown, increasing by 12.2 percent in October versus 14.9 percent the month before, and indicated that the fuel tax cut that runs to year-end is having an effect. Core inflation, which excludes volatile food and energy prices, fell to 2.1 percent from 2.4 percent the month before. 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 percent in October, slightly above September's 3.8 percent, according to economists polled by Reuters. German GDP increased by 0.2 percent in the third quarter compared with the previous three-month period, according to preliminary data from the statistics office, slightly...
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