Eurozone inflation rate accelerated to 3.8% in September, reaching a three-year high

⑴ The preliminary annual inflation rate in the Eurozone for September 2026 accelerated to 3.8%, higher than August’s 3.2% and the market expectation of 3.6%. ⑵ This inflation rate is the highest since September 2023 and remains far above the European Central Bank’s 2% target, mainly driven by surging energy prices due to ongoing Middle East conflicts. Energy inflation jumped to 18.8%, the highest since January 2023. ⑶ Service sector price growth accelerated from 3.0% to 3.2%, while unprocessed food prices rose from 2.7% to 4.0%. The core inflation rate, excluding energy and food, increased from 2.4% to 2.5%, in line with expectations. ⑷ Among the major Eurozone economies, Germany’s inflation rate accelerated from 2.9% to 3.3%, France’s from 2.6% to 3.4%, Spain’s from 4.6% to 5.0%, Italy’s from 3.2% to 4.1%, and the Netherlands’ from 2.8% to 3.0%.