BERLIN: Inflation in Germany remained steady at 1.8 per cent in September despite rising food and energy prices, suggesting the core inflation rate is likely to have fallen, according to preliminary estimates. Economists had expected the annual rate to come in at 1.9 per cent, according Reuters. Prices remained flat over the month, compared to consensus forecasts for a 0.1 per cent increase.
Food prices were the main driver of the annual increase, rising 3.6 per cent compared to 3 per cent in the year to August. Energy price inflation also increased, but price increases in the services sector lagged behind at 1.6 per cent. Headline inflation rates are expected to decline across the eurozone in the coming months as the impact of past changes in energy prices falls out of year on year calculations. However, in its last set of in-house projections released at the start of the month, the European Central Bank predicted the strong European would only have a small impact on price rises over the next two years.
