Eurozone Inflation Accelerates to 3.8%, ECB Under Pressure

The Eurozone's inflation rate accelerated to 3.8% year-over-year in September, exceeding market expectations of 3.6%. The Harmonized Index of Consumer Prices (HICP) revealed a significant increase in food and energy prices, which contributed to the higher overall inflation rate.

Despite this, the Euro remains practically flat against the US Dollar, trading at around 1.1250. The EUR/USD pair has pulled back from session highs near 1.1270 but is still on track for a 1.26% weekly selloff.

The acceleration in inflation rates puts pressure on the European Central Bank (ECB) to tighten its monetary policy further. However, high Oil prices and concerns about France's fiscal health are keeping Euro buyers away.