FX.co ★ Eurozone Inflation Accelerates to Three-Year High

Eurozone annual inflation rose to 3.8% in September 2026, up from 3.2% in August and above market expectations of 3.6%, according to preliminary estimates. This marked the highest rate since September 2023 and kept inflation well above the ECB’s 2% target, driven primarily by a sharp increase in energy costs amid ongoing conflict in the Middle East. Energy inflation surged to 18.8%, its highest level since January 2023. Price growth also picked up for services, rising to 3.2% from 3.0%, and for unprocessed food, to 4.0% from 2.7%. Core inflation, which excludes energy and food, edged up to 2.5% from 2.4%, in line with forecasts. Among the largest economies in the euro area, inflation accelerated in Germany to 3.3% from 2.9%, in France to 3.4% from 2.6%, in Spain to 5.0% from 4.6%, in Italy to 4.1% from 3.2%, and in the Netherlands to 3.0% from 2.8%.