Germany's most populous state North Rhine-Westphalia's inflation picks up to 2.4 per cent
With price pressures building in the eurozone, the ECB last week confirmed its plan to end its 2.6 trillion euro bond-buying programme at the end of this year and raise interest rates for the first time since 2011 sometime after next summer.
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Inflation in Germany's most populous regions accelerated in October to reach the highest level in many years, data showed on Tuesday, adding weight to the European Central Bank's case for gradually winding down its unprecedented monetary stimulus.
With price pressures building in the eurozone, the ECB last week confirmed its plan to end its 2.6 trillion euro bond-buying programme at the end of this year and raise interest rates for the first time since 2011 sometime after next summer.
The ECB's goal is to keep inflation in the euro zone close to, but just below, two per cent a year.
Annual inflation in Germany's most populous state, North Rhine-Westphalia, picked up to 2.4 per cent in October from 2.3 per cent in the previous month, preliminary regional statistics office data showed.
This was the highest reading since October 2011.
In Bavaria, the second-most populous state, and in Baden-Wuerttemberg, the third, annual inflation accelerated to 2.8 per cent after 2.5 per cent in the previous month.
The state inflation readings, which are not harmonised to compare with other eurozone countries, feed into nationwide data due at 1300 GMT.
A poll conducted before the release of the regional data suggested that Germany's harmonised consumer price inflation (HICP) rate would pick up to 2.4 per cent in October from 2.2 per cent in the previous month.
This would be the highest reading since February 2012.
The eurozone will publish preliminary inflation data for October on Wednesday, with the headline figure expected to pick up to 2.2 per cent after 2.1 per cent in September, according to a Reuters poll.
(With inputs from agencies.)
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