11:38 AM EDT, 10/30/2026 (MT Newswires) -- ING views the slowdown in Germany's inflation rate as positive news for the European Central Bank, indicating that its decision to wait and hold rather than rush toward increasing its key rates was a "wise" move. "Inflationary pressures are fading as German headline inflation came in at 2.8% year-on-year in October, from 3.3% YoY in September. This is not only a tax rebate story, but also a broader-based retreat of inflationary pressures as both core and services inflation also fell," ING said Friday, noting that the annual core inflation rate also eased. "For the ECB, today's German inflation data will comfort the doves as the numbers show that there are still no indirect or second-round effects in sight. If this situation remains unchanged, even a December rate hike might not be a done deal, yet." Looking forward, ING forecasts headline inflation in Germany to rise again, staying above 3% toward the end of 2026 and in early 2027, amid expectations of higher gas prices as the winter season begins. "It could now take until the end of 2027 before headline inflation drops below 2% again," ING added.

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