French Inflation Surges Past Expectations Amid Energy Price Pressures

France's inflation rate exceeded expectations in September, driven by continued energy price pressures that could prompt European Central Bank policymakers to raise interest rates again next month.

The consumer price index rose 3.4% compared to the same period last year, up from 2.6% in August, according to France's statistics agency Insee. This outpaced economists' forecasts of a 3.1% increase, as polled by The Wall Street Journal.

Energy costs specifically jumped 21%, with fuel prices increasing due to escalating tensions in the Middle East. Services-sector inflation also rose, along with food price increases, according to Insee's data.