As Energy Costs Jump, Eurozone Inflation Hits a Three Year High

According to Eurostat data released on Friday, October 2, 2026 (10 Mehr 1405) and reported by Iran's Mehr News Agency on Sunday, October 4, eurozone consumer prices rose 3.8 percent year on year in September, accelerating from 3.2 percent in August and exceeding analysts' estimate of 3.6 percent. This is the fastest annual eurozone inflation rate since September 2023. The data showed that continued Middle East tensions, by pushing up energy prices, were the main driver of the acceleration. Energy inflation reached 18.8 percent in September, up from 14.3 percent in August. Services inflation was 3.2 percent, food and tobacco 1.4 percent, and non energy industrial goods 1.1 percent. Core inflation, excluding energy and food, was estimated at 2.5 percent in September, still notably below the headline rate. The data will complicate interest rate policy at the European Central Bank.