Germany's inflation rate hits new high in September

By Tuba Sahin

ANKARA (AA) - Mainly driven by surging energy prices, Germany's annual consumer inflation rose to a new peak in September, according to provisional data released on Thursday.

Consumer prices rose 10% year-on-year in September, up from 7.9% in August, said Destatis, the country's statistical office.

Thus inflation hit double digits for the first time since the euro was introduced over two decades ago.

In August, the Bundesbank warned in a report that annual inflation rate in Germany could reach double digits by fall, citing the unclear situation in commodity markets.

Energy prices soared 43.9% in September compared to a year ago, while food prices were up 18.7% year-on-year.

"Marked price increases at the upstream stages in the economic process have an upward effect on prices, together with the continuing supply chain interruptions caused by the COVID-19 pandemic," Destatis said.

September's flash reading was well above market forecast of 9.5%.

On a monthly basis, consumer prices increased 1.9% in September.