Euro Area Inflation Accelerates Amid Energy Price Pressures

The euro-area inflation rate accelerated in September, mainly driven by higher energy and food prices. According to Nordea's Global Macro team, Tuuli Koivu, Jan von Gerich, and Anders Svendsen, this increase is not a cause for concern, as core inflation remains relatively stable.

However, the team notes that predicting future energy price pressures is challenging due to high uncertainty in the oil market. Geopolitical tensions in the Middle East do not show signs of easing, but there are also indications that global oil production may be higher than expected.

The Nordea team does not expect the European Central Bank (ECB) to raise rates at its upcoming policy meeting, citing moderate broader price pressures and the potential for positive surprises in the energy market.