German inflation surprised on the downside in October, falling 0.1% over the month.
It marks the first time that German inflation has fallen in five months and contrasted with market forecasts for a 0.1% rise over October.
A slowdown in energy inflation was the chief cause of the unexpectedly weak number.
On a year-on-year basis, Germany´s consumer price index rose 1.5% in October versus 1.8% in September.
Energy inflation slowed significantly, to 1.2% from 2.7%. However, food inflation climbed to 4.3% from 3.6%.
The slower inflation reading is unlikely to be indicative of weakness in the German economy.
German retail sales figures released today for September beat forecasts, with retail turnover increasing 4.1% year-on-year.
However, yields on 10-year German bunds were trading lower today, at 0.368% versus yesterday´s close of 0.391%.
Lower inflation data generally tends to push government bond yields down.