German Inflation Rises in Five Key States Amid Global Price Pressures
Inflation in Germany rose in five key states in September, indicating that the country's national inflation rate may increase this month.
Preliminary data released on Wednesday showed that Bavaria's inflation rate jumped to 3.2% from 2.9%, while North Rhine-Westphalia and Lower Saxony saw a rise to 3.3% from 2.9%. Baden-Wuerttemberg's inflation rate increased to 2.9% from 2.6%, and Hesse rose to 3.4% from 3.0%
The war in Iran has pushed up energy and raw material prices in previous months, leading the German government to expect inflation to accelerate to 2.7% this year and 2.8% in 2027. Economists polled by Reuters forecast a harmonized national inflation rate of 3.2% in September, up from 2.9% in the previous month.
The European Central Bank's chief, Christine Lagarde, said on Monday that this year's inflation surge has yet to generate dangerous second-round effects across the euro zone, making a moderate policy response appropriate.