Europe Economy

German Inflation Rises to Highest Level in Three Years


An official estimate shows that Germany's annual inflation rate rose to 2.6 percent in September, its highest in three years.

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The Federal Statistical Office said Wednesday that inflation was propelled by higher costs of oil-based products and by higher clothing prices as the new season's collections were introduced.

The annual rate was up from 2.4 percent in August. The statistical office estimates that prices were up 0.1 percent in month-on-month terms.

Data from Germany, Europe's biggest economy, are important as the European Central Bank decides whether to change interest rates for the 17-nation eurozone.

The ECB has raised rates twice this year to combat above-target inflation but now faces pressure to cut rates amid signs the eurozone economy could slide into recession.