Euro Stalls Near 16-Month Low Amid Eurozone Inflation Surge

The Euro (EUR) is relatively unchanged against the US Dollar (USD) on Friday, trading near the 16-month low of 1.1210 hit the day before.

September's preliminary Harmonized Index of Consumer Prices (HICP) report shows inflation accelerated to a 3.8% year-over-year rate, exceeding market expectations of 3.6%, and putting pressure on the European Central Bank (ECB) to tighten its monetary policy further.

The main drivers behind the rise in inflation are likely food and energy prices, as the core HICP ticked up to 2.5% from 2.4% in line with market expectations.