German inflation jumped to 2.4% in September, the highest rate so far this year, the Federal Statistical Office said on Tuesday.
The provisional figure represents a significant rise from the 2.2% rate measured in August.
Consumer prices rose by 0.2% month on month, the Wiesbaden-based agency said, driven by inflation in food and services.
“Inflation is more persistent than many had hoped,” said Commerzbank chief economist Jörg Krämer. He said this was mainly due to significantly higher labour costs, which are responsible for a rise in prices for services.
While inflation is now at its highest since the 2.6% seen in December 2024, the rate remains far below the levels seen following the Russian invasion of Ukraine, reaching 6.9% in 2022 and 5.9% in 2023.
The country’s leading economic institutes expect inflation for the full year of 2025 to settle at 2.1%, in line with the European Central Bank (ECB) target of 2%.
However, consumers are still likely to feel the effects of ongoing price rises in foodstuffs. According to the ECB, food prices have risen by 37% in Germany since 2019, before the coronavirus pandemic.
Core inflation, a measure that does not include volatile prices of food and energy, was up slightly to 2.8%.
Prices of services rose by 3.4% year-on-year, while energy was 0.7% cheaper – significantly less than in previous months this year.
Source: dpa
Source: ghanabusinessnews.com
