The Globe and Mail reports in its Thursday, Oct. 1, edition that German inflation hit its highest level since December, 2023, while seasonally adjusted unemployment rose above three million in September, highlighting ongoing challenges for Europe's largest economy after a strong first half of the year. A Reuters dispatch to The Globe reports that harmonized inflation in Germany rose to 3.3 per cent year-on-year, according to preliminary data from the federal statistics office, reflecting the effects of the energy price shock from the Iran war. Analysts had forecast the EU-harmonized consumer price index at 3.2 per cent in September, compared with 2.9 per cent the month before. Energy inflation rose to 14.9 per cent in September from 10.5 per cent in August, in line with the trend in other big euro zone economies. Carsten Brzeski, global head of macro at ING, said: "Inflation currently remains an energy price phenomenon. As long as core inflation remains subdued, some European Central Bank members might question the need for further hikes." Core inflation, which excludes the volatile prices of energy and food, remained unchanged for the third consecutive month at 2.4 per cent.