Inflation picked up in five key German states in September, preliminary data showed on Wednesday, suggesting that Germany's national inflation rate is likely to have risen this month.
The state-level figures, measured against August, showed a broad acceleration: Bavaria rose to 3.2% from 2.9%, North Rhine-Westphalia to 3.3% from 2.9%, Lower Saxony to 3.3% from 2.9%, Baden-Wurttemberg to 2.9% from 2.6%, and Hesse to 3.4% from 3.0%. Economists polled by Reuters forecast a harmonised national inflation rate of 3.2% for September, up from 2.9% in August. The national figures were due later on Wednesday.
Energy and raw material prices have been pushed higher in previous months by the war in Iran, adding to cost pressures across Europe's largest economy. The German government now expects inflation to accelerate to 2.7% this year and 2.8% in 2027 — a reminder that the price spike is not expected to be fleeting.
The German data lands ahead of Friday's euro zone inflation release, for which economists polled by Reuters expect a bloc-wide reading of 3.6% in September, up from 3.2%. On Monday, European Central Bank chief Christine Lagarde said a moderate policy response from the ECB remains appropriate, noting that there were no dangerous second-round effects yet.
Because Germany is the euro zone's largest economy, its state-level data is the key preview of Friday's bloc-wide number — and markets will be watching the national figure closely when it is published later today.
Sources: Inflation up in five German states in September, pointing to national rise (Reuters)
The state-level figures, measured against August, showed a broad acceleration: Bavaria rose to 3.2% from 2.9%, North Rhine-Westphalia to 3.3% from 2.9%, Lower Saxony to 3.3% from 2.9%, Baden-Wurttemberg to 2.9% from 2.6%, and Hesse to 3.4% from 3.0%. Economists polled by Reuters forecast a harmonised national inflation rate of 3.2% for September, up from 2.9% in August. The national figures were due later on Wednesday.
Energy and raw material prices have been pushed higher in previous months by the war in Iran, adding to cost pressures across Europe's largest economy. The German government now expects inflation to accelerate to 2.7% this year and 2.8% in 2027 — a reminder that the price spike is not expected to be fleeting.
The German data lands ahead of Friday's euro zone inflation release, for which economists polled by Reuters expect a bloc-wide reading of 3.6% in September, up from 3.2%. On Monday, European Central Bank chief Christine Lagarde said a moderate policy response from the ECB remains appropriate, noting that there were no dangerous second-round effects yet.
Because Germany is the euro zone's largest economy, its state-level data is the key preview of Friday's bloc-wide number — and markets will be watching the national figure closely when it is published later today.
Sources: Inflation up in five German states in September, pointing to national rise (Reuters)
