Inflation dips in key German states in October, pointing to national fall

BERLIN, Oct 30 (Reuters) – Inflation fell in several key German states in October, preliminary data showed on Friday, suggesting ​Germany’s national inflation rate could also decrease this ‌month.

• In Bavaria, the inflation rate fell to 2.8% in October from 3.2% in September. In North Rhine-Westphalia it dipped ​to 2.7% from 3.3%, while in Lower ​Saxony it fell to 2.9% from 3.3%. ⁠Baden-Wuerttemberg saw a 0.3 percentage point fall to ​2.6% while in Saxony the inflation rate remained at ​2.8%.
• The war in Iran has pushed up energy prices in recent months, and the German government currently expects inflation to reach ​2.7% this year and 3.0% in 2027.
• Economists polled ​by Reuters are forecasting a harmonised national inflation rate in ‌Germany – ⁠the euro zone’s largest economy – of 3.1% in October, down from 3.3% in the previous month. National figures will be released later on Friday.
• The German data ​comes ahead of ​the euro ⁠zone inflation release on Wednesday. Inflation in the bloc is expected to come ​in at 3.9% in October, slightly ​above ⁠September’s 3.8%, according to economists polled by Reuters.
• The European Central Bank left interest rates unchanged on Thursday but clearly ⁠hinted ​at another hike in December, ​with a warning that high and rising energy costs were fuelling ​inflation risks.

Writing by Miranda Murray, Editing by Friederike Heine