Eurozone inflation jumped to its highest level for 13 years in September, pushed by increasing energy costs, in a way that is likely to expand pressure on the ECB to cut back on its monetary stimulus.
- Consumer prices in the 19-bloc countries increased by 3.4% compared to a year ago, up from 3% in August.
- Eurostat stated that acceleration in prices was caused by a 17.4% increase in energy costs from a year ago. The price growth of goods slowed from the previous month to 2.1% as service prices increased to 1.7%.
- The core inflation rates, excluding the volatile energy, food, alcohol, and tobacco prices, increased from 1.6% in August to 1.9% in September.
The euro area inflation is expected to continue rising towards its previous high of more than 4% before slowly declining next year with the disappearance of the on-off factors associated with the reopening of the economy from the pandemic restrictions.
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