Eurozone Inflation Rises To 3-Year High
(RTTNews) - Eurozone inflation accelerated more than expected to a three-year high in September on energy prices, flash estimate from Eurostat showed Friday.
Inflation rose to 3.8 percent in September, marking the highest since September 2023, from 3.2 percent in August. The rate was forecast to climb to 3.7 percent.
Excluding energy, food, alcohol and tobacco, core inflation rose marginally to 2.5 percent from 2.4 percent in the previous month.
On a monthly basis, consumer prices gained 0.6 percent after a 0.4 percent increase in August.
Among components of the harmonized index of consumer prices, energy prices showed the sharpest annual growth of 18.8 percent. The increase in food, alcohol and tobacco prices advanced to 1.4 percent from 1.1 percent.
Likewise, non-energy industrial goods prices gained 1.1 percent, following August's 1.2 percent increase. Services inflation rose to 3.2 percent from 3.0 percent in the previous month.
Last month, the European Central Bank had raised its key interest rates as inflation was expected to remain well above the target for an extended period. This was the second hike in 2026 after lifting rates in June.
Energy prices are expected to remain higher for some time to come, and the economy is trucking along decently, ING economist Bert Colijn said. With wage growth increasing, concerns about second-round effects remain alive and kicking.
The ECB still has work to do with inflation significantly higher in September and broader inflationary pressures remaining, he added.
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