Annual euro area inflation accelerated from 3.2% to 3.8% in September, above the expected 3.6% and at the highest level in approximately three years. Core inflation rose more moderately, from 2.4% to 2.5%, with an increase in services.
The main driver came from fuels, natural gas, and, to a lesser extent, food. This turns part of the energy risk previously being monitored into effectively recorded inflation, keeping the index well above the ECB’s 2% target.
The main driver came from fuels, natural gas, and, to a lesser extent, food. This turns part of the energy risk previously being monitored into effectively recorded inflation, keeping the index well above the ECB’s 2% target.