Germany's inflation rate climbed to 3.3% year-on-year in September, the highest since December 2023, according to preliminary data from the national statistical office, **Destatis**. This increase was higher than what analysts had expected, with **Factset** predicting 3.2%. In August, the rate was 2.9%. A major factor behind the rise was the increase in energy prices, which surged 14.9% compared to the same period last year, especially in fuel costs. The **European Central Bank** tracks inflation using the harmonized consumer price index (HICP), which stood at 2.9% in September. The German Ministry of Economy has directed the public energy company **SEFE** to boost gas purchases in an effort to build up reserves before winter. This decision was made in light of "persistent geopolitical risks," particularly tensions in the **Middle East**. Across the **European Union**, other major economies also saw rising inflation. **France** reported an annual inflation rate of 3%, while **Italy** reached 4.2%. Elmar Völker, an analyst at **LBBW Research**, noted that the current economic indicators suggest the **European Central Bank** could consider another tightening of its monetary policy in the fourth quarter. This would follow a 0.25 percentage point rate increase in September. However, Völker mentioned that a decision may not be made at the ECB's next meeting, scheduled for the end of October. Underlying inflation, which excludes food and energy prices, remained at 2.4% in September, as reported by **Destatis**. In September, the price increase for goods in Germany accelerated to 3.8%, up from 3.0% in August. Meanwhile, the rise in service prices slowed slightly, dropping to 2.7% from 2.8% in August and 2.9% in July. This indicates that while goods prices are rising more sharply, the pace of increase in service costs is moderating.