Eurozone Inflation Hits Three-Year High of 3.8 Percent
The Eurozone's annual inflation rate has reached its highest level in three years, according to a recent flash estimate from Eurostat. In September, the rate rose to 3.8 percent, up from 3.2 percent in August and matching the September 2023 peak.
Energy prices continue to drive inflation, with an expected annual rate of 18.8 percent in September, surpassing last month's 14.3 percent. In contrast, non-energy industrial goods' inflation is forecasted to decrease to 1.1 percent from 1.2 percent.
The core inflation rate, which excludes energy, food, alcohol, and tobacco prices, edged up to 2.5 percent in September from 2.4 percent in August. Inflation accelerated across the eurozone's largest economies, with Germany's rate climbing to 3.3 percent, France's rising to 3.4 percent, Italy's increasing to 4.1 percent, and Spain's reaching 5.0 percent.
Lithuania is expected to record the highest annual inflation rate in September at 6.1 percent, followed by Bulgaria at 5.6 percent, while Malta posts the lowest rate at 2.4 percent.