German inflation likely to ease in September, key states indicate

BERLIN, Sept 28 (Reuters) - German inflation is likely to ease significantly in September based on data from five key German states on Thursday, signalling what could be the beginning of the end for high inflation that has weighed heavily on Europe's largest economy.

Inflation in all five states - Bavaria, Baden-Wuerttemberg, Brandenburg, North Rhine-Westphalia and Hesse - fell by at least a percentage point, with Baden-Wuerttemberg recording the largest drop, to 5.1% in September from 7.0% the month before.

The states' September inflation rates ranged from 4.1% in Bavaria, down from 5.9% the month before, to 5.6% in Brandenburg, down from 7.1%.

The data support a dip in euro zone inflation in September, to 4.5% from 5.2% the month before, that is predicted by analysts polled by Reuters when figures are released on Friday.

Analysts forecast national German inflation in September falling sharply, to 4.5% from 6.4% last month. The statistics office is set to publish national inflation at 1200 GMT.

Price pressures have eased in Europe's largest economy since last year, when an energy crisis triggered by the Ukraine war pushed inflation up to a decades-long high of 11.6% in October.

However, inflation remains well above the European Central Bank target of 2% and core inflation, excluding volatile prices like food and energy, has been stubbornly high. (Reporting by Miranda Murray Editing by Friederike Heine and Mark Potter)