Rising Inflation in Germany: A New Turn for the Euro Zone

German inflation has unexpectedly accelerated in September, climbing to 2.4%, as indicated by preliminary figures from the federal statistics office. This marks the second straight month of inflationary increase, interrupting the previous disinflationary trend.

The EU-harmonised inflation was forecasted by analysts to reach 2.2%, rising from last month's 2.1%, but the actual rate surpassed these predictions. Furthermore, Germany's core inflation rate, which excludes the more volatile food and energy prices, increased to 2.8%, following a three-month plateau at 2.7%.

As Germany stands as Europe's largest economy, these developments are crucial for understanding potential trends in the broader euro zone, where inflation is anticipated to tick up to 2.2%. Despite these developments, the European Central Bank has opted to keep interest rates unchanged, reflecting confidence in the economic outlook.

(With inputs from agencies.)