Inflation accelerates in four German states in July, pointing to national rise

BERLIN, July 30 (Reuters) - Inflation rose in four key German states in July, according to preliminary data published on Thursday, suggesting the national inflation rate could also increase this month.

• In Bavaria, the inflation rate accelerated to 2.8% in July from 2.5% in June. In North Rhine-Westphalia, Germany's most populous state, it rose to 2.7% from 2.1%, while in Baden-Wuerttemberg, it rose to 2.5% from 2.1%. In Lower Saxony, it ticked up to 2.7% from 2.5%.
• The war in Iran had pushed up energy and raw material prices in previous months, and the German government now expects inflation to accelerate to 2.7% this year and 2.8% in 2027.
• Economists polled by Reuters are forecasting a harmonised national inflation rate in Germany - the euro zone's largest economy - of 2.8% in July, up from 2.4% in the previous month. National figures will be released later on Tuesday.
• The German data come ahead of the euro zone inflation release on Friday. Inflation in the bloc is expected to come in at 2.9% in July, slightly above 2.8% in the previous month, according to economists polled by Reuters.
• The European Central Bank kept borrowing costs on hold in July but left room for more tightening in the coming months as a widening conflict in the Middle East pushed up energy prices again.