Eurozone Inflation Soars, ECB Faces Pressure to Raise Interest Rates Again

The European Central Bank is facing pressure to raise interest rates again due to accelerating inflation in the eurozone. The inflation rate rose significantly faster than expected in some of the largest economies, including France, Italy, and Germany.

Inflation in these countries exceeded 3% year-on-year in September, with France reaching 3.4%, Italy at 4.1%, and Germany at 3.3%. These rates are well above the ECB's 2% target.

The main driver of inflation is energy prices, which have risen drastically due to the Iran war. Investors expect further interest rate hikes, with four more increases predicted over the next year, on top of the two already implemented this summer.