German state CPI data point to above consensus turnout at national level

The cost of living in Germany picked up sharply during the previous month, driven in part by the expiry of a temporary government mandated reduction in rail fares.

The annual rate of increase in consumer price index for North-Rhine Westphalia jumped from 8.1% for August to 10.1% in September.

In Bavaria meanwhile CPI accelerated by 2.4 percentage points to 10.8% and in Brandenburg by 2.0 points to 9.9%.

Preliminary due out at 1330 BST had been expected to reveal an increase in the annual rate of CPI gains from 7.9% to 9.6%.

In harmonised terms, economists expected CPI would rise from 8.8% to 10.1%.

According to Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics, the regional inflation data pointed to a "hot" CPI print that was set to come in a "good bit higher" than the consensus.