Germany’s consumer price inflation accelerated to the highest level in nearly 30 years in September driven by one-off factors as well as supply shortages, official data showed on Thursday.
Consumer price inflation rose to 4.1 percent in September from 3.9 percent in August, Destatis reported.
This was the highest since December 1993, when inflation was 4.3 percent. Inflation was forecast to rise to 4.2 percent.
EU harmonized inflation advanced to 4.1 percent from 3.4 percent in the previous month. The expected rate was 4 percent.
The acceleration in inflation will put more pressure on the European Central Bank’s December debate on how to proceed with its asset purchases next year, Carsten Brzeski, an ING economist said.
Looking ahead, the economist said some one-off factors should disappear at the start of next year but the recent surge in energy prices, as well as continued supply chain frictions and post-lockdown price mark-ups, are likely to keep German inflation above 2 percent throughout most of 2022.
On a monthly basis, consumer prices remained flat for the second straight month in September. Economists had forecast an increase of 0.1 percent.
At the same time, the harmonized consumer prices gained 0.3 percent, slightly faster than the expected 0.2 percent. The final results for September will be released on October 13.
Data showed that goods prices rose at a faster pace of 6.1 percent in September, following prior month’s 5.6 percent increase. Services cost grew at a steady pace of 2.5 percent.