German inflation rises to 3.3 per cent on higher energy prices
Fuels became particularly expensive, while core inflation remained stable.
Inflation in Germany rose to 3.3 per cent year on year in September, according to preliminary figures. Energy and fuels were the main drivers of the increase; core inflation, which excludes energy and food, remained at 2.4 per cent in the initial estimate.
German consumer prices were 3.3 per cent higher in September than a year earlier. That is the highest inflation rate since late 2023 and slightly above economists’ expectations. The preliminary figures come from Germany’s statistics office and were reported by Reuters. The final figure will follow later.
The sharpest price increase was recorded in energy. According to the initial estimate, energy inflation rose to 14.9 per cent, from 10.5 per cent in August. Higher oil prices are feeding through mainly into petrol, diesel and heating oil. In North Rhine-Westphalia, fuel prices rose by 36.9 per cent compared with September last year, according to the regional statistics office. Diesel became 48.7 per cent more expensive there and petrol 33.8 per cent.
The development is not entirely uniform. Inflation stood at 3.3 per cent in North Rhine-Westphalia, while Hesse recorded 3.4 per cent. Bavaria came in at 3.2 per cent and Baden-Württemberg at 2.9 per cent. Such regional figures provide an early indication of the national figure, but are not a substitute for national statistics.
Outside energy, price pressures remained more limited. Core inflation remained at 2.4 per cent for the third month in a row, according to the preliminary national figures. This does not yet show a clear acceleration in broader price developments for services and goods. The initial figures therefore point mainly to an energy shock, rather than a general acceleration in all prices.
For households and businesses, the increase comes at a sensitive moment. From October, Germany is again temporarily introducing a reduction in fuel duty. The measure is intended to ease pressure on motorists and businesses, but it also reduces tax revenues. The government had previously introduced a similar reduction when energy prices rose sharply.
The figures are also relevant to the European Central Bank. Inflation is clearly above the 2 per cent target, while higher energy prices are partly being caused by geopolitical developments. An interest-rate increase can curb demand, but does not itself make fuel and oil cheaper. The ECB must therefore weigh how much of the price increase is temporary and how much risk there is that it will spread more broadly through wages and services.
One story, several perspectives
What is established
- Inflation rose because of higher energy prices.
- Core inflation remained at 2.4 per cent.
- Germany is introducing a temporary fuel-duty reduction.
- The ECB monitors an inflation target of 2 per cent.
Left
Arguments The government should protect households against energy poverty in a targeted way, rather than primarily subsidising motorists. A broad fuel-duty reduction could encourage fossil-fuel use and would relatively often benefit people who drive a lot.
Values Affordability, social protection and climate policy.
Consequences Targeted support can help vulnerable households without broadly driving up demand for fossil fuels; insufficient support could deepen purchasing-power problems.
Centre
Arguments The government should provide temporary relief, while also monitoring the budgetary costs and the consequences for inflation. The ECB must distinguish between a temporary rise in energy prices and broader domestic price pressures.
Values Pragmatism, purchasing power and monetary stability.
Consequences A limited temporary measure can cushion the shock, but prolonged subsidies can delay necessary adjustment.
Right
Arguments The primary responsibility lies with sound public finances and a competitive economy. Fuel taxes should be reduced if energy prices threaten production and mobility, while the ECB must enforce price stability.
Values Competitiveness, lower taxes and fiscal discipline.
Consequences Lower taxes can quickly help businesses and consumers, but reduced tax revenues limit the scope for other government spending.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
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The key figures come from preliminary German statistics as reported by Reuters. Regional fuel figures were checked separately; interpretations concerning interest rates and policy are presented as analysis.
- confirmed German inflation stood at 3.3 per cent year on year in September. — Preliminary figures from Germany’s statistics office, reported by Reuters. source
- confirmed German energy inflation rose to 14.9 per cent. — Reuters syndication of the preliminary German figures. source
- confirmed Core inflation remained at 2.4 per cent. — Mentioned in the preliminary national figures. source
- confirmed Fuel prices in North Rhine-Westphalia rose by 36.9 per cent. — Regional price data from IT.NRW, reproduced in the cited publication. source
- confirmed Germany is again introducing a temporary fuel-duty reduction from October. — Reuters previously reported on the approved temporary reduction. source
Editor's note
The national September figures are preliminary. The role of energy is clearly visible; regional figures are supplementary and should not be read as a national breakdown.Sources
- German inflation accelerates slightly more than expected in September — Reuters
- Inflationsrate in NRW liegt im September bei 3,3 Prozent — Berliner Sonntagsblatt
- Verbraucherpreisindex und Inflationsrate — Statistisches Bundesamt