Euro Area Inflation Jumps to 3.8%, ECB Rate Hike on Hold

The euro area's annual inflation rate has accelerated to 3.8% in September, according to a 'flash estimate' from Eurostat, the EU statistics office.

This is up from 3.2% in August and is largely driven by energy prices, which have risen 18.8% compared to this time last year.

In Ireland, inflation also rose to 3.9%, slightly above the average, according to figures from the Central Statistics Office (CSO).

The Economic and Social Research Institute (ERSI) has warned that inflation will continue into next year, with a forecast of 3.3% in 2024.

The European Central Bank's (ECB) target rate is around 2%, which would typically signal the need for interest rates to be raised to cool economies.