German inflation to hit 4-year high in Jan

German inflation is likely to have picked up further in January, surpassing the European Central Bank's official price stability target of just under 2 percent for the first time in more than four years, regional data suggested on Monday.

The strong inflation data, published by several German states, is expected to fuel the political debate in Europe's biggest economy about an end to the ECB's loose monetary policy.

Preliminary data from several states showed that consumer price inflation accelerated in most German regions. In the most populous state of North Rhine-Westphalia, for example, annual inflation rose to 2.1 percent after 1.9 percent in December.

Consumer prices increased by 2.3 percent in Saxony and by 2.4 percent in Hesse whereas the annual inflation rate remained unchanged at 1.7 percent in both Brandenburg and Bavaria.

The state readings, which are not harmonised to compare with other euro zone countries, will feed into nationwide inflation data for Europe's largest economy due out at 1300 GMT. A Reuters poll suggests overall consumer price inflation rose to 2.0 percent in January after 1.7 percent in December, the highest rate since December 2012.

Helaba economist Stefan Muetze said, however, he now expects the EU-harmonised inflation rate (HICP) to come in a tick stronger at around 2.1 percent.