Eurozone Inflation Rises to 3.8% in September

Overview

• Eurostat confirmed on Friday that annual inflation in the euro area accelerated to 3.8% in September, up from 3.2% in August.
• Energy was the main driver, with energy inflation jumping to 18.9% and adding 1.71 percentage points to the headline rate.
• Core inflation measures remain elevated at 2.3% excluding energy and 2.5% excluding energy, food, alcohol and tobacco, showing underlying price pressure beyond volatile fuels.
• Inflation outcomes varied widely across member states, with Romania at 6.5% and Sweden at 1.0%, and Italy recording a sharp rise to 4.2% driven by regulated energy at 25.8% and non‑regulated energy at 22.5%.
• Monthly CPI rose 0.6% in September for the euro area and 0.7% in Italy, a pattern that could keep central bankers watching and may worsen household costs for bills and transport; the next euro‑area release is due on 18 November 2026.