Euro Zone Inflation Surges to 3.8%, ECB Rate Hike Pressure Mounts

The European Central Bank is facing renewed pressure to raise interest rates as inflation in the euro zone surged more than expected in September, hitting 3.8%.

This marks a significant increase from 3.2% the previous month and exceeds forecasts of 3.6% in a Reuters poll.

The main driver behind this jump was fuel costs, with natural gas prices also contributing to the rise.

While some argue that energy costs have been too high for too long and are bound to set off second-round effects, others point out that the labor market is relatively soft and workers can hardly demand big pay increases.