Eurozone Inflation Spikes Amid Record Energy Prices

Energy costs have sent inflation soaring across Europe, with Germany, France, and Italy seeing their highest rates in years.

The annual rate of inflation hit 3.3 percent in Germany, the fastest pace since December 2023, according to preliminary data from Destatis.

In France, consumer prices rose three percent in September compared to a year earlier, the highest since February 2024 and a sharp increase from 2.4 percent in August, statistics office Insee said.

Italy inflation jumped to 4.2 percent, nearly a full percentage point above the 3.3 percent recorded in August, the Istat agency reported.

The price hikes are well above the European Central Bank's inflation target of two percent, raising the likelihood it will raise interest rates further.