Inflation increased in five major German states in September, raising expectations that Germany's national rate will climb to 3.2% from 2.9% in August. Bavaria recorded 3.2%, North Rhine-Westphalia and Lower Saxony 3.3%, Baden-Wuerttemberg 2.9% and Hesse 3.4%. Economists polled by Reuters expect euro zone inflation to reach 3.6% on Friday, while ECB chief Christine Lagarde said on Monday that a moderate policy response remains appropriate because the surge has not produced dangerous second-round effects. The German government expects inflation to accelerate to 2.7% this year and 2.8% in 2027, after energy and raw-material prices were pushed higher by the war in Iran in previous months.