Eurozone Inflation Hits Three-Year High as Fuel Prices Surge

The eurozone's inflation rate rose to 3.8% in September, its highest level in three years, due to a sharp increase in fuel prices. The figure surpassed economists' forecast of 3.7%, and was higher than the August rate of 3.2%. Fuel costs surged by 18.8% year-on-year in September.

The rise in fuel prices also pushed inflation in food and non-alcoholic beverages from 1.1% to 1.4%. Core inflation, which excludes volatile items such as energy and food, edged up to 2.5% in September from 2.4% in August.

The European Central Bank aims to keep inflation close to 2%, and the latest rise has added pressure on the bank. The increase in fuel costs could also lead to a difficult decision over interest rates.