BERLIN (Reuters). BERLIN (Reuters). German inflation will remain close to 5% in January according to regional data from five countries. This is well above the European Central Bank’s target for price stability of 2% across the entire euro area.

According to preliminary data, North-Rhine Westphalia and Bavaria, Hesse and Brandenburg showed an annual consumer price inflation (CPI) of 4.7% to 5.6% for January.

At 1300 GMT, Monday will bring the pan-German inflation data for Europe’s biggest economy.

An analyst poll by Reuters suggests that January’s overall CPI rate was 4.3%. According to projections, the EU-harmonised inflation rate (HICP), will be 4.7%. The CPI annual rate in December was 5.3% with the HICP reading at 5.7%.

The Eurozone inflation reached 5% in the last month. This was the highest recorded for 19-country currency blocks. However, the ECB anticipates that it will fall below its 2% target by 2023 and 2024.

Last week, Philip Lane, chief economist at the ECB told a Lithuanian newspaper that the central bank would increase policy if inflation is seen above its target. However this scenario seems less likely right now.

While the ECB is scheduled to meet next Thursday, there are no expected policy moves as the bank released a complex set of measures in December.

The German Economy Ministry stated last Wednesday that they expect consumer price inflation in the United States to increase further, contrary to previous projections. This will lead to increased wage demands from labour unions.

The head of Germany’s IG Metall union, said Thursday that higher wages are a goal for the upcoming collective negotiations in iron and steel and the metal, and electrical industries.