Eurozone Inflation Jumps to 3.8% as Energy Prices Surge 18.8%
Updated
Updated · CNBC · Oct 2
Eurozone Inflation Jumps to 3.8% as Energy Prices Surge 18.8%
3 articles · Updated · CNBC · Oct 2
Summary
September eurozone inflation accelerated to 3.8% from 3.2% in August, topping the 3.6% market forecast and marking the highest reading since September 2023.
Energy prices drove much of the jump, with energy inflation hitting 18.8%—the highest since January 2023—as the Middle East conflict kept fuel costs elevated.
core inflation held at 2.5%, but analysts said the breadth of the increase suggests price pressure is no longer only an energy story.
The reading sharpens focus on the ECB's Oct. 29 meeting, after markets had recently scaled back bets on back-to-back rate increases following signals that higher bond yields were already tightening conditions.
With inflation still far above the ECB's 2% target, the data complicates any case for waiting and raises the risk of renewed policy tightening.