Inflation in Germany reached 3.3% in September — Anadolu Agency

In Germany, annual harmonized inflation rose to 3.3% in September, compared with 2.9% in August. The country’s economy likely stagnated in the third quarter as higher energy prices weakened household purchasing power, the Bundesbank reported.

Impact of energy and industry

As Anadolu Agency reports, the central bank partly attributed the pause in the economic recovery to temporary factors. These include low water levels in the Rhine and the effects of fuel tax breaks.

Low water levels in the river hampered shipping and increased transport costs for energy-intensive industries, including oil refining and the chemical industry. This also affected foreign trade. Industrial production in August was affected by weakness in the automotive sector and the concentration of factory holidays in that month.

More current news is available on the UA.News Telegram channel Telegram.

Price expectations

The Bundesbank linked the acceleration of inflation to higher energy prices amid the conflict in the Middle East. The bank expects price growth to remain high as energy costs are increasingly reflected in the prices of industrial goods, food and services.

At the same time, construction volumes increased in August, but higher mortgage rates will limit activity in this sector, according to the bank. The end of fuel tax breaks and healthcare reform, which provides for increased patient co-payments for medicines and hospital services, may create additional inflationary pressure at the beginning of 2027.