By Maria Martinez
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.
• 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%.
• 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.
• 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.
• 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)
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