Eurozone inflation accelerated more than expected in September, reaching its highest level in three years as higher energy prices intensified price pressures across the region, according to preliminary data from Eurostat.
Annual inflation rose to 3.8% in September from 3.2% in August, exceeding market expectations of 3.6%. The reading was the highest since September 2023 and remained well above the European Central Bank’s 2% inflation target.
Energy Inflation Surges to 18.8%
Energy was the main driver of the acceleration, with prices rising 18.8% from a year earlier, the strongest increase since January 2023.
The increase came amid elevated energy prices linked to continued fighting in the Middle East, adding renewed inflationary pressure to European economies.
Price growth also accelerated across other categories. Services inflation increased to 3.2% from 3.0%, while prices for unprocessed food rose 4.0%, compared with 2.7% in August.
Core Inflation Rises to 2.5%
Underlying inflation also moved higher.
Core inflation, which excludes energy and food, increased to 2.5% from 2.4%, matching market expectations.
The rise indicates that September’s acceleration was not limited entirely to energy, although the sharp increase in that category accounted for a significant portion of the headline move.
Inflation Accelerates Across Major Eurozone Economies
Higher inflation was widespread among the euro area’s largest economies.
Germany’s annual rate increased to 3.3% from 2.9%, while France recorded a sharper acceleration to 3.4% from 2.6%.
Inflation in Spain reached 5.0%, up from 4.6%, while Italy’s rate climbed to 4.1% from 3.2%. In the Netherlands, inflation increased to 3.0% from 2.8%.
The September figures show renewed price pressures across the euro area, led by energy but accompanied by increases in services, food and core inflation. With headline inflation at 3.8%, the latest data leave price growth significantly above the ECB’s target.
