German figures show inflation steady at 1.1%

German inflation in September is expected to be unchanged at 1

German inflation in September is expected to be unchanged at 1.1 per cent year-on-year after six states reported that cheaper fuel and holidays offset a spike in fresh food prices induced by hot weather.

The states of North Rhine-Westphalia, Baden-Wuerttemberg and Brandenburg all reported today that prices eased 0.1 per cent month-on-month, echoing data yesterday from the west German states of Bavaria and Hesse.

The east German state of Saxony said prices there were unchanged in the month.

The states reported annual inflation rates ranging from 0.9 per cent to 1.4 per cent.

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"It's exactly in line with what we expected," said Holger Schmieding of Bank of America, which had forecast inflation would remain unchanged in September at 1.1 per cent year-on-year.

Germany's federal statistics office said it would release a preliminary pan-German inflation number later today. The six states' data is used to compile the figure.