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Annual inflation in Germany slowed to 2.8% in October, down from 3.3% in September and below analysts’ expectations of 3.1%. Core inflation also eased, to 2.1% from 2.4%. The economy grew by 0.2% quarter on quarter in the third quarter, exceeding expectations of 0.1%, supported by government spending, while private-sector activity remained weak. The decline in inflation was partly linked to a slower rise in energy prices after a fuel-tax cut began to take effect. However, analysts warned that energy pressures persist and the economic recovery is not yet sustainable.
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