Eurozone Inflation Hits 3.8% as Energy Prices Soar

The eurozone's inflation rate has surged to 3.8% in September, up from 3.2% in August, according to the latest flash estimate. Energy prices drove this increase, rising by 18.8% year-on-year, significantly higher than other components such as services.

Core inflation, which excludes volatile items like energy, remained at 2.5%, while service-sector inflation edged up from 3.0% to 3.2%. The widening gap between headline and core inflation suggests that current price pressures remain strongly energy-driven.

The European Central Bank (ECB) has raised its three key interest rates by 25 basis points, bringing the deposit facility rate, the main refinancing rate, and the marginal lending rate to 2.50%, 2.65%, and 2.90% respectively.