New figures show that inflation in Germany topped a three-year high of 2.6% in September, in a potential blow to those hoping for a cut in euro zone interest rates soon.
At an annual rate of 2.6%, the headline inflation figure for the euro zone's largest economy was the highest since September 2008 and up on the 2.4% recorded in August, the national statistics office Destatis said.
It was also higher than expected, as analysts had forecast an unchanged figure of 2.4%. On a monthly basis, consumer prices rose by 0.1 percent in September.
As in previous months, rising energy costs, in particular for heating and motor fuels, but also higher clothing prices were the main factor behind the pick-up.
The European Central Bank aims to keep inflation close to, but below 2%, so the higher than expected German inflation number could affect hopes for a cut in interest rates at the ECB's policy meeting next week.
