More expensive energy and services boosted euro zone inflation as expected in September, data showed today, with core inflation also higher.
The European Union’s statistics office Eurostat said consumer prices in the euro zone rose 0.5% month-on-month in September for a 3.4% year-on-year rise, as earlier estimated by Eurostat.
While the headline number was well above the European Central Bank’s target of 2%, the overshoot was mainly a result of a 17.6% year-on-year surge in energy prices and a 2% rise in the costs of food, alcohol and tobacco.
Without these volatile items, or what the ECB calls core inflation, prices grew 0.4% month-on-month for a 1.9% year-on-year increase, faster than the 1.6% annual rise in August.
Eurostat said energy prices were responsible for almost half of the overall year-on-year inflation reading, adding 1.63 points to the final result.
Services added another 0.72 points and prices of non-energy industrial goods a further 0.57 points.
The ECB expects consumer prices will start easing again in 2022.