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Eurozone Inflation Hits 3-Year High of 3.8% as Energy Prices Surge
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Firstpost•02-10-2026, 15:57
Eurozone Inflation Hits 3-Year High of 3.8% as Energy Prices Surge
- •Eurozone inflation accelerated to a three-year high of 3.8% in September, up from 3.2% in August, exceeding market forecasts.
- •This marks the seventh consecutive month inflation has remained above the European Central Bank’s 2% target, pressured by a renewed energy shock linked to the Middle East conflict.
- •Energy inflation surged to 18.8% in September, its highest level since January 2023, while core inflation rose to 2.5% and services inflation climbed to 3.2%.
- •Inflation increased across all four largest Eurozone economies, with Spain recording a 5% annual inflation rate.
- •The data complicates the ECB's policy outlook, with markets anticipating a potential 25-basis-point rate hike by year-end ahead of the October 29 meeting.
Key Questions Answered
Eurozone inflation surged to a three-year high of 3.8 per cent in September, which was a sharp acceleration from 3.2 per cent in August and higher than the 3.6 per cent market forecast.
Energy inflation jumped to 18.8 per cent in September, up significantly from 14.3 per cent in August and reaching its highest level since January 2023.
The latest inflation data could complicate the European Central Bank's policy outlook, with markets pricing in the possibility of another 25-basis-point rate hike by the end of the year ahead of their October 29 meeting.
