German Inflation Rises To 2.4% In September, Highest This Year

German inflation unexpectedly rose to 2.4% in September, marking the highest rate this year and surpassing forecasts, as reported by the Federal Statistical Office. This increase was driven primarily by higher costs in food and services, with core inflation excluding volatile food and energy prices also rising slightly to 2.8%. Inflation increases were noted across key German states such as North Rhine-Westphalia, Bavaria, Baden-Wuerttemberg, and Lower Saxony, reflecting a broader national trend. The rise in German inflation has contributed to a corresponding uptick in euro zone inflation, which is forecasted to reach around 2.2%, slightly above the European Central Bank's target. Despite the inflation rise, the ECB has maintained steady interest rates, indicating confidence in the economic outlook and signaling no immediate plans for further rate cuts. The inflationary pressures are considered persistent but moderate, with energy prices decreasing and the overall increase partly attributed to a less pronounced drop in energy costs compared to previous months.