German State Inflation Reads Rise Ahead of Euro Zone Release

Inflation readings for major German states have increased in September, suggesting that Germany's national inflation rate may also rise this month.

The preliminary data shows that Bavaria's inflation has climbed to 3.2%, up from 2.9% in August, while North Rhine-Westphalia and Lower Saxony both posted readings of 3.3%, up from 2.9%. Baden-Wuerttemberg's inflation rate increased to 2.9% from 2.6%, and Hesse's rose to 3.4% from 3.0%

Economists forecast Germany's harmonized national inflation rate to increase to 3.2% in September, up from 2.9% in August.

The stronger readings come ahead of the euro zone inflation release on Friday, with economists polled by Reuters expecting inflation across the bloc to reach 3.6% in September, up from 3.2% a month earlier.