Inflation dips in key German states in October, pointing to national fall
TLT•Inflation fell in several German states in October, with rates ranging from 2.6% to 2.9%. Economists forecast Germany’s harmonised national rate at 3.1%, down from 3.3% in September.
1. State inflation rates fall
Preliminary data showed inflation fell in Bavaria to 2.8% from 3.2% in September, in North Rhine-Westphalia to 2.7% from 3.3%, and in Lower Saxony to 2.9% from 3.3%. Baden-Wuerttemberg’s rate fell 0.3 percentage point to 2.6%, while Saxony’s remained at 2.8%.
2. National and euro zone outlook
Economists forecast Germany’s harmonised national inflation rate at 3.1% in October, down from 3.3% the previous month; national figures were due later on Friday. Euro zone inflation is expected to rise to 3.9% from 3.8% in September. The German government expects inflation to reach 2.7% this year and 3.0% in 2027.
3. Energy and interest rates
The article said the war in Iran has pushed up energy prices in recent months. The European Central Bank left interest rates unchanged on Thursday and warned that high and rising energy costs were fuelling inflation risks, while hinting at another hike in December.
