BERLIN, Sept. 30 (Xinhua) -- German inflation accelerated to 3.3 percent in September, its highest level since late 2023, as a sharp rise in energy prices continued to push up consumer costs, preliminary data showed Wednesday.
The rate rose from 2.9 percent in August after hovering at elevated levels in recent months, according to the Federal Statistical Office.
Energy prices jumped 14.9 percent year-on-year in September, accelerating sharply from a 10.5-percent increase in August, the data showed.
Inflationary pressures in Europe's largest economy have intensified in recent months as the conflict in the Middle East has driven up energy prices.
To ease the impact of high fuel prices and rising inflation, the German government has announced a temporary fuel tax cut from Oct. 1 through the end of the year, at an estimated total cost of 2.5 billion euros (2.8 billion U.S. dollars).
"The fuel tax cut is likely to dampen inflation again by around 0.3 percentage points in October," said Holger Schmieding, chief economist at Hamburg-based Berenberg.
The measure, however, is expected to provide only temporary relief as broader energy-related price pressures remain elevated.
Carsten Brzeski, global head of macro at ING Research, noted that gas storage levels were below 60 percent at the end of September, historically low for this time of year.
"Low gas storage levels are likely to lead to higher gas prices over the coming weeks, translating into higher retail prices at the start of next year," he said, adding headline inflation could remain above 2 percent until the end of 2027.
Persistent inflation pressures are also reflected in a joint forecast released last week by Germany's five leading economic institutes, which projected inflation to rise from 2.2 percent in 2025 to 2.8 percent this year and further to 3.2 percent in 2027, before easing to 2 percent in 2028.
