Inflation in the eurozone rose by 10 percent in September, a new record high since the launch of the single currency in 1999, according to a flash estimate published on Friday by Eurostat, the statistical office of the European Union (EU).

The rate increased from 9.1 percent in August, the previous record, said Eurostat.

Energy prices, which rose by 40.8 percent in September from a year ago, were once again the main contributor to accelerating inflation. The respective figure in August was 38.6 percent.

The rate of inflation in the eurozone in September was also high for food, alcohol and tobacco, rising by 11.8 percent, compared with 10.6 percent in August. The cost of non-energy industrial goods rose by 5.6 percent, compared with 5.1 percent in August, while that of services rose by 4.3 percent, compared with 3.8 percent in August.

Core inflation excluding energy, food and beverages increased from 4.3 percent in August to 4.8 percent in September.

Ten of the 19 eurozone countries recorded double-digit overall inflation, including Germany, the largest economy.

ING senior economist Bert Colijn said this jump was more broad-based than expected and will provide extra fuel for European Central Bank (ECB) hawks. The bank is set to hike rates drastically at its upcoming meetings. In October, the ECB is likely to announce another 75-basis-point rate hike.

Also on Friday, the French National Institute of Statistics and Economic Studies (INSEE) reported that France’s consumer price index (CPI) is estimated to rise by 5.6 percent in September from a year earlier.


Please enter your comment!
Please enter your name here