Inflation up in five German states in September, pointing to national rise

Inflation Rises Across Five German States in September, Signaling National Increase

By Maria Martinez

German State Inflation Data and National Implications

Rising Inflation Rates in Key German States

BERLIN, Sept 30 (Reuters) - Inflation rose in five key German states in September, preliminary data showed on Wednesday, suggesting Germany's national inflation rate could increase this month.

State-by-State Inflation Breakdown

• In Bavaria, the inflation rate rose to 3.2% in September from 2.9% in August. In North Rhine-Westphalia and in Lower Saxony it increased to 3.3% from 2.9%, in Baden-Wuerttemberg it rose to 2.9% from 2.6% and in Hesse it rose to 3.4% from 3.0%.

Contributing Factors to Inflation

• The war in Iran has 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.

National and Euro Zone Inflation Outlook

Forecasts for Germany and the Euro Zone

• Economists polled by Reuters are forecasting a harmonised national inflation rate in Germany - the euro zone's largest economy - of 3.2% in September, up from 2.9% in the previous month. National figures will be released later on Wednesday.

• The German data comes ahead of the euro zone inflation release on Friday. Inflation in the bloc is expected to come in at 3.6% in September, up from 3.2% in the previous month, according to economists polled by Reuters.

European Central Bank Policy Response

• This year's inflation surge has yet to generate dangerous second-round effects across the euro zone, so a moderate policy response from the European Central Bank remains appropriate, ECB chief Christine Lagarde said on Monday.

(Reporting by Maria Martinez, Editing by Miranda Murray)