German inflation hits highest level in almost 3 years
EWG•German harmonised inflation rose to 3.3% year-on-year in September, its highest level since December 2023, while seasonally adjusted unemployment increased by 12,000 to 3.01 million. August retail sales rose 1.3%, less than expected.
1. Inflation accelerates
Germany’s harmonised inflation rate rose to 3.3% year-on-year in September from 2.9% the month before, preliminary data showed. Energy inflation climbed to 14.9% from 10.5%, while core inflation remained at 2.4% for a third consecutive month.
2. Unemployment tops 3 million
Seasonally adjusted unemployment increased by 12,000 to 3.01 million, exceeding analysts’ forecast of a 1,000 increase. The jobless rate held at 6.4%. Labour office head Andrea Nahles said the autumn pickup in the labour market had started sluggishly and that economic improvement was not yet reaching it.
3. Retail sales rise modestly
German retail sales increased 1.3% in August compared with the previous month, less than expected. The government will cut gasoline and diesel taxes by €0.17 per litre from Thursday through the end of December to help citizens manage fuel prices.
