Inflation in Germany rises to 3.3 percent

Inflation in Germany continues to rise noticeably. In September, goods and services cost 3.3 percent more than a year ago. The Federal Statistical Office reported this flash estimate on Wednesday with a view to the Harmonized Consumer Price Index (HICP).

This is the highest level since December 2023 (3.8 percent). Experts surveyed by the Bloomberg news agency had on average only expected a slight increase from 2.9 to 3.0 percent in the HICP and to 3.1 percent according to national calculations (CPI). But the CPI also rose to 3.3 percent.

Investors react with uncertainty. The German leading index Dax turned negative in the morning when the first data from individual federal states indicated a significant increase in inflation. The yields on German government bonds are rising and their prices are falling because investors expect further interest rate increases and are selling bonds.

The European Central Bank (ECB) is likely to be concerned that statisticians across the euro zone are reporting unexpectedly high inflation data. In Spain the inflation rate rose from 4.6 to 5.0 percent, in Italy from 3.2 to 4.1 percent. Both are the highest values ​​since 2023. In France there is a two-year high of 3.4 percent. Analysts had not expected such strong increases in any of the four major euro countries.

This shows that inflation in the euro zone, which is important for the ECB, has also moved significantly further away from the two percent target. In August it was 3.2 percent. According to Bloomberg, the average forecast for the initial estimate by the statistical office Eurostat on Friday is 3.5 percent.