Germany's consumer price inflation accelerated for a second straight month in September and at a faster than expected pace to reach its highest level in nine months, and the EU measure also followed a similar trend to hit its strongest level since February, adding to the troubles of a sluggish economy and could raise concern for the European Central Bank that hopes to maintain status quo after aggressive policy easing for nearly a year.
The consumer price index rose 2.4 percent year-on-year following a 2.2 percent increase in August, preliminary data from the statistical office Destatis showed on Tuesday. Economists had forecast 2.3 percent inflation. Headline inflation was the strongest since December, when it was 2.6 percent.
Inflation, based on the EU measure of harmonized index of consumer prices or HICP, accelerated sharply to 2.4 percent from 2.1 percent in August. That was far ahead of the 2.2 percent price growth economists had forecast. The HICP inflation was the highest since February, when it was 2.6 percent.
by Jyotsna V
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