German inflation slows more than expected in October

BERLIN, Oct 30 (Reuters) - German inflation eased more than expected in October, the first month of a government fuel tax cut, as lower prices at the pump helped slow consumer price growth.

Inflation slowed to 2.8% year-on-year, preliminary data from the federal statistics office showed on Friday.

Analysts polled by Reuters had forecast the EU-harmonised consumer price index to come in at 3.1% in October, compared with 3.3% in September.

The rise in energy prices slowed slightly in October, to 12.2%, from 14.9% in September.

Core inflation, which excludes volatile food and energy prices, fell to 2.1% from 2.4% the month before.

The fuel tax reduction, introduced at the start of October and due to remain in place until year-end, has led to a modest decline in fuel prices.

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% in October, slightly above September's 3.8%, according to economists polled by Reuters.

The European Central Bank left interest rates unchanged on Thursday but clearly hinted at another hike in December, with a warning that high and rising energy costs were fuelling inflation risks.

(Reporting by Kirsti Knolle and Miranda Murray, editing by Friederike Heine and Ludwig Burger)