Eurozone Inflation Confirmed at Highest Since 2023

Eurozone annual inflation accelerated to 4.0% in October 2026, up from 3.8% in September, according to preliminary estimates, reaching its highest level since September 2023 and remaining well above the ECB’s 2% target. The increase was driven primarily by a sharp surge in energy prices amid continued fighting in the Middle East, with energy inflation jumping to 20.8%, its highest level since December 2022. Price growth also accelerated in services, to 3.3% from 3.2%, and unprocessed food, to 4.6% from 4.0%. Meanwhile, core inflation, which excludes energy and food, remained unchanged at 2.5%, in line with expectations. Among the eurozone’s largest economies, inflation accelerated in France to 3.8% from 3.4%, Italy to 5.6% from 4.2%, and the Netherlands to 3.3% from 3.0%. In contrast, Germany’s inflation rate eased to 2.8% from 3.3%, partly reflecting a temporary fuel tax cut, while Spain’s rate edged down to 4.9% from 5.0%.

The annual inflation rate in the Eurozone accelerated for a third consecutive month to 3.8% in September 2026, the highest since September 2023, compared to 3.2% in August and in line with the preliminary estimate. Prices rose faster for energy (18.9% vs 14.3%), services (3.2% vs 3%) and food, alcohol and tobacco (1.3% vs 1.1%). On the other hand, inflation slowed slightly for non-energy industrial goods (1.1% vs 1.2%). Inflation accelerated across the bloc, with Slovakia the only country to record a slight decline, to 3% from 3.1%, while rates in Latvia and Portugal were unchanged at 3% and 3.6%, respectively. Among the Eurozone’s largest economies, inflation rose in Germany to 3.3% from 2.9%, France to 3.4% from 2.6%, Italy to 4.2% from 3.2%, Spain to 5% from 4.6%, and the Netherlands to 3% from 2.8%. Annual core inflation which excludes energy, food, alcohol & tobacco went up to 2.5% from 2.4%. Compared to August, the CPI increased 0.6%.

Eurozone annual inflation accelerated to 3.8% in September 2026, up from 3.2% in August and above market expectations of 3.6%, according to preliminary estimates. The rate reached its highest level since September 2023 and remained well above the ECB’s 2% target, driven largely by a surge in energy prices amid continued fighting in the Middle East. Energy inflation jumped to 18.8%, its highest level since January 2023. Price growth also accelerated for services, to 3.2% from 3.0%, and unprocessed food, to 4.0% from 2.7%. Core inflation, which excludes energy and food, rose to 2.5% from 2.4%, in line with expectations. Among the euro area’s largest economies, inflation accelerated in Germany to 3.3% from 2.9%, France to 3.4% from 2.6%, Spain to 5.0% from 4.6%, Italy to 4.1% from 3.2%, and the Netherlands to 3.0% from 2.8%.