"Inflation in Germany hit its highest level in nearly three decades last month, fueled by rising energy costs, supply chain bottlenecks and price hikes following the easing of pandemic lockdowns."

German consumer prices increased 4.1% in September compared with a year earlier, the country's federal statistics office said in a statement. The last time inflation stood above 4% in Europe's biggest economy was in June 1992, according to Carsten Brzeski, global head of macro research at ING.

The EU statistics office estimates that annual energy prices increased by more than 17% in September, compared with 15.4% in August. Prices for food and services have also risen.

Energy alone was 14% more expensive than last year, with food prices rising nearly 5%. Other drivers of inflation include changes to German sales taxes following the pandemic and price mark-ups in leisure and hospitality following lockdowns.

German consumer prices increased 4.1% in September compared with a year earlier, the country's federal statistics office said in a statement. The last time inflation stood above 4% in Europe's biggest economy was in June 1992, according to Carsten Brzeski, global head of macro research at ING.