German inflation hits three-month high

28 Jul, 2011

German inflation hit a three-month high this month after an unexpectedly strong upward push from oil prices, data showed on Wednesday, adding pressure for a further European Central Bank interest rate rise this year. Preliminary data from Germany's statistics agency showed national consumer price inflation rose to 2.4 percent this month, its highest since April, defying economists' expectations for it to hold steady at June's reading of 2.3 percent.
The above-forecast rate suggests Friday's reading for the whole eurozone could come in higher than the 2.7 percent pencilled in by economists, and move further above the ECB's target of close to but below two percent.

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