STORY: Germany held off the threat of recession in the third quarter with unexpected growth.
Gross domestic product rose 0.3% in Q3 compared to the previous three months.
Economists were surprised by the data - they had predicted a contraction of 0.2%.
Germany's statistics office said economic output was driven mainly by private consumer spending.
But data showed Friday (October 28) the country still faced problems with high inflation and energy issues.
Consumer prices were up 11.6% on the year in October - higher than analysts predicted.
The key Ifo economic institute warned the full effect of inflation had not yet hit consumers.
Energy prices have also surged due to a plunge in energy imports from Russia.
That has driven concerns of a potential gas shortage this winter, even though storage facilities are filled to near capacity.
Year on year, GDP rose by 1.2% in the third quarter in seasonally adjusted terms - beating analysts' forecast.
Looking ahead, Ifo isn't confident of more growth in the immediate future, and predicts a 0.6% contraction in Q4.