German inflation tops 3-year high in September

28th September 2011, Comments 0 comments

Inflation in Germany, the largest European economy, reached a three-year high of 2.6 percent in September, worse than expected, provisional data showed on Wednesday.

At 2.6 percent on a 12-month basis, the headline inflation figure for September was the highest since September 2008 and up on the 2.4 percent recorded in August.

It was also higher than expected. According to a poll by Dow Jones Newswires, analysts had pencilled in a figure of 2.4 percent for September.

On a monthly basis, consumer prices rose by 0.1 percent in September, the Destatis office said.

Once again, rising energy costs, in particular for heating and motor fuels, but also higher clothing prices were the main factor behind the pick-up, it said.

The higher-than-expected inflation number could dent hopes for a cut in interest rates by the European Central Bank at its meeting next week.

© 2011 AFP

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