Germany's inflation hits 3.3% in September, highest since 2023

Annual consumer inflation in Germany reached 3.3% in September, hitting its highest level since December 2023 as energy and motor fuel prices soared, official data showed on Tuesday.

The inflation rate in the country accelerated from 2.9% in August and 2.8% in July, according to Destatis data.

Ruth Brand, president of Destatis, said the rate exceeded the 3% mark to reach a new record high for the year and the highest level since December 2023.

Brand added that energy prices drove the increase, particularly mineral oil products at filling stations and heating oil.

Total consumer prices rose by 0.6% on a monthly basis in September.

Energy product prices jumped 14.9% in September compared to the same month last year, marking the third consecutive month of acceleration and the largest increase since February 2023.

Motor fuel prices surged 37.1% and heating oil soared 74.9% year-on-year in September, reflecting price increases on the crude oil market since the start of the Iran war.

Conversely, electricity, natural gas, and district heating prices fell by 5.5%, 2.8%, and 1%, respectively, partly due to government relief measures.

Food prices registered a below-average annual increase of 0.4% in September.

The core inflation rate, which excludes food and energy, stood at 2.4% in September, remaining below the overall inflation rate.

Prices of goods increased by 3.8% year-on-year, while services became 2.7% more expensive.