Annual Inflation in Germany Reaches 3.3 Percent in September, Highest Level in Three Years

According to preliminary consumer price index data for September released by the Federal Statistical Office of Germany, Destatis, annual inflation in the country has climbed to a three-year peak.

Consumer Price Index Data

The Federal Statistical Office of Germany, Destatis, shared the preliminary consumer price index data for September with the public. According to the announced figures, annual inflation in the country rose to 3.3 percent in September, compared to 2.8 percent in July and 2.9 percent in August.

Market Expectations and Rates

On a monthly basis, the consumer price index recorded an increase of 0.6 percent, while the European Union-harmonized consumer price index stood at 3.3 percent annually and 0.6 percent monthly. Meanwhile, the markets had expected the EU-harmonized index to be 3 percent and the national standard index to be 3.1 percent.

Impact of Energy Prices

Core inflation, which excludes food and energy costs, remained stable at 2.4 percent. The main driver of the surge in inflation was once again energy prices, with energy product prices increasing by 14.9 percent compared to the same period last year.

Eurozone and Market Reactions

Annual inflation across the Eurozone, which was 3.2 percent in August, is projected to reach between 3.5 percent and 3.6 percent in September. Following the data from Germany, German government bond yields rose and bond prices fell.