Eurozone inflation hits 3.4 percent in September
Inflation will be on Monday’s Eurogroup docket as the 19 eurozone finance ministers meet.
Eurozone inflation increased by an annual 3.4 percent in September, according to early estimates from the EU’s statistics office on Friday.
Those numbers will likely trigger renewed calls for calm from the European Central Bank, which is mandated to keep inflation at 2 percent over the medium term. ECB President Christine Lagarde said just three days ago that “the key challenge is to ensure that we do not overreact to transitory supply shocks that have no bearing on the medium term.”
But EU bond markets are reflecting growing concern in the markets over inflation. And the latest figures signal a continued rise since July, when inflation reached 2.2 percent, and then 3 percent in August.
These pressures are also spilling over into labor markets. Some workers in Germany, for example, are going on strike to demand higher pay to match the country’s inflation rate, which hit 4.1 percent last month — a 29-year high.
A massive 17.4 percent spike in energy prices was a main factor in the higher inflation rate, according to Eurostat. However, core inflation, which excludes energy and other typically volatile components, was only 1.9 percent in September.
The subject will be on Monday’s Eurogroup docket as the 19 eurozone finance ministers meet and will be further discussed the following day with the rest of their EU peers.
Those numbers will likely trigger renewed calls for calm from the European Central Bank, which is mandated to keep inflation at 2 percent over the medium term. ECB President Christine Lagarde said just three days ago that “the key challenge is to ensure that we do not overreact to transitory supply shocks that have no bearing on the medium term.”
But EU bond markets are reflecting growing concern in the markets over inflation. And the latest figures signal a continued rise since July, when inflation reached 2.2 percent, and then 3 percent in August.
These pressures are also spilling over into labor markets. Some workers in Germany, for example, are going on strike to demand higher pay to match the country’s inflation rate, which hit 4.1 percent last month — a 29-year high.
A massive 17.4 percent spike in energy prices was a main factor in the higher inflation rate, according to Eurostat. However, core inflation, which excludes energy and other typically volatile components, was only 1.9 percent in September.
The subject will be on Monday’s Eurogroup docket as the 19 eurozone finance ministers meet and will be further discussed the following day with the rest of their EU peers.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
