German inflation tops three-year high in September: data

28th September 2011, Comments 0 comments

Inflation in Germany topped a three-year high of 2.6 percent in September, official data showed Wednesday, denting speculation for a possible cut in eurozone interest rates any time soon.

At 2.6 percent on a 12-month basis, the headline inflation figure for the eurozone's largest economy was the highest since September 2008 and up on the 2.4 percent recorded in August, the national statistics office Destatis said.

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.

As in previous months, 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.

Using the EU's Harmonised Index of Consumer Prices or HICP, which is the European Central Bank's inflation yardstick, the cost of living in Germany rose by 2.8 percent on a 12-month basis in September.

The European Central Bank aims to keep inflation close to, but below 2.0 percent, so the higher-than-expected German inflation number could dent hopes for a cut in interest rates at the ECB's policy meeting next week.

© 2011 AFP

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