German states point to inflation concerns for ECB

BERLIN Jan 27 (Reuters) - Inflation picked up in four German states in January, data showed on Thursday, in an early sign that consumer prices in the broader euro zone may be rising fast enough to raise concerns for the European Central Bank.

Prices in North Rhine-Westphalia, Germany's most populous state, increased by 2.0 percent on an annual basis -- accelerating from a rate of 1.8 percent the previous month.

"The last time the price index surpassed 2 percent was in October 2008," the state said in a statement, adding that inflation would have only been 1.3 percent were fuel and energy costs stripped out.

Due to its heavy weighting in the national index of consumer prices, the state's sharp rise suggest Germany's annual inflation figures could surpass the ECB's target rate of close to 2 percent, as predicted by economists in a Reuters poll.

The states of Hesse, Brandenburg and Saxony increased at an annual rate of between 1.5 to 1.9 percent, also driven by higher costs for heating oil and seasonal foodstuffs.

Preliminary data for the country based on data from six German states is expected later on Thursday.

A Reuters poll of 29 economists forecast German consumer prices will rise by 2.0 percent over last January, while declining by 0.3 percent versus December.

(Reporting by Christiaan Hetzner; Editing by John Stonestreet)