Energy Costs Spark ECB Rate Hike Fears

The European Central Bank (ECB) may be forced to raise interest rates due to the increasing cost of energy, according to Freedom Broker's lead analyst Natalia Milchakova.

Inflation in the eurozone accelerated to a three-year high in September, reaching 3.8% year over year from 3.2% in August, with higher energy costs being the main pressure on prices.

The annual growth in energy prices rose 18.8% over the year, and core inflation, which excludes energy and food, increased from 2.4% to 2.5%, showing that price growth is not limited to the energy sector.

Milchakova links the rise in energy prices to a new stage of the Middle East conflict and reduced supplies of oil and gas from Persian Gulf countries to Europe, which increases companies' expenses and the cost of fuel, heating, and transportation.