European Inflation Soars as Energy Costs Reach Record Highs

Energy costs have pushed inflation rates up across Europe, with Germany, France, and Italy seeing significant increases in September. In Germany, the annual rate of inflation hit 3.3 percent, the fastest pace since December 2023, according to preliminary data from Destatis.

In France, consumer prices rose three percent in the month compared to a year earlier, the highest since February 2024 and a sharp increase from 2.4 percent in August, statistics office Insee reported.

Italy's inflation rate jumped to 4.2 percent, nearly a full percentage point above the 3.3 percent recorded in August, according to Istat agency data.

The price hikes are well above the European Central Bank's (ECB) inflation target of two percent, raising expectations that it will raise interest rates further.