Inflation up in five German states in September, pointing to national rise
EWG•Inflation rose in five German states in September, with rates ranging from 2.9% to 3.4%. Economists forecast Germany’s harmonised national inflation rate at 3.2%, up from 2.9% in August.
1. State inflation rises
Preliminary data showed inflation increased in Bavaria to 3.2% from 2.9% in August, and in North Rhine-Westphalia and Lower Saxony to 3.3% from 2.9%. It rose in Baden-Wuerttemberg to 2.9% from 2.6% and in Hesse to 3.4% from 3.0%.
2. National and euro zone outlook
Economists polled by Reuters forecast Germany’s harmonised inflation rate at 3.2% in September, up from 2.9% the previous month; national figures were due later Wednesday. The euro zone inflation rate is expected to rise to 3.6% from 3.2%, while ECB chief Christine Lagarde said a moderate policy response remains appropriate because the inflation surge has yet to generate dangerous second-round effects.
