HispanicBusiness

German inflation rate in October remained at 2.0 percent, unchanged from the previous month, Federal Statistical Office (Destatis) said on Friday.

The Wiesbaden-based office said in a statement that the inflation was largely determined by development of energy prices, 5.5 percent up compared with the same month of the previous year.

Food prices was up 3.3 percent in October 2012 year on year, and prices of total services rose below average by 1.1 percent. In general, prices increased by an above-average 2.8 percent.

Compared with September 2012, the consumer price index remained unchanged in October 2012. Prices of energy declined by 1.1 percent, while the costs of motor vehicle insurance, clothing and food increased.

It has been the third month in a row to see the inflation above 2.0 percent. In August, the inflation rate measured by the consumer price index was 2.1 percent, while in June and July, the rate remained at 1.7 percent.

Measured by the harmonised index of consumer prices (HICP), an indicator of inflation used by European Central Bank, Germany saw an inflation rate of 2.1 percent in October 2012. Slightly higher than ECB's price stability maintenance goal for medium term, which is below but close to 2.0 percent.

On Thursday, ECB announced to keep interest rate on hold at 0.75 percent in November. ECB President Mario Draghi said in a press conference that economic activities in eurozone were expected to remain week, and reiterated that inflation expectations for the euro area "remain firmly anchored in line with our aim of maintaining."