German Preliminary CPI Accelerates to 3.3% in September, Exceeding Forecasts

• German preliminary CPI rose to 3.3% in September, above 2.9% in August.
• Energy prices surged 14.9%, driving headline inflation.
• Core inflation remained stable at 2.4%, limiting immediate EUR impact.

Germany’s preliminary Consumer Price Index (CPI) accelerated to 3.3% year-over-year in September, up from 2.9% in August and exceeding the anticipated 3.1%. The Harmonized Index of Consumer Prices (HICP), preferred by the European Central Bank, also rose to 3.3% annually. This acceleration was largely driven by a sharp increase in energy prices, which surged 14.9% year-over-year, compared to 10.5% in August. Monthly CPI increased by 0.6%, surpassing the 0.5% forecast. State-level inflation readings had previously indicated this upward trend, with all four reported states showing at least a 0.3 percentage point increase from August. Despite the headline acceleration, core CPI remained stable at 2.4%, suggesting that the broader economy may not be experiencing significant knock-on effects from higher energy costs, and the EUR/USD pair showed no immediate significant market reaction.