Eurozone Inflation Surge Adds Pressure on ECB

Inflation accelerated in the eurozone’s largest economies in September, driven by rising energy prices and adding pressure on the European Central Bank over its interest-rate outlook.

The pickup strengthened expectations of a rate increase as higher energy costs pushed prices upward across the currency bloc’s major economies.

Eurozone-wide inflation was estimated to reach 3.6%. That figure remained a projection rather than a confirmed reading for the region.

The rise presents a policy challenge for the ECB: higher interest rates can help contain inflation, but they do not directly address the energy costs driving the latest acceleration.