German inflation slows further to 1.6pc in Sept

FRANKFURT, Germany, Sept 30 (AFP): German inflation slowed in September to its lowest level since early 2021, official data showed Monday, sliding further below the European Central Bank's two-per cent target rate.

The annual inflation rate in Europe's biggest economy declined more than expected to 1.6 per cent, down from 1.9 per cent in August, preliminary data from federal statistics agency Destatis showed.

Analysts surveyed by FactSet had predicted a September inflation rate of 1.7 per cent.

This month's reading is the lowest in Germany since February 2021, before consumer prices began their steady rise between the impact of the coronavirus pandemic and Russia's 2022 invasion of Ukraine. September's drop in inflation was led by energy prices, which fell 7.6 per cent from a year earlier, according to the data.

The fall in prices for fuel could be traced back to a "cyclical fall in oil prices since the end of August", LBBW analyst Jens-Oliver Niklasch said in a statement.

The German inflation data was well below the target of two percent set by the ECB, mirroring the trend seen in other large western European economies.