September inflation in Germany, France, Italy and Spain beats consensus
Fuel costs pushed September inflation above expectations in Germany, France, Italy and Spain, with Spain at 5%, its highest since 2023. Economists had expected 3.7% for euro-area inflation, and several national prints this week raised upside risk for the bloc.
A fuel-led surge in energy prices pushed September inflation in Germany, France, Italy and Spain above consensus, with Spain at 5% and its highest reading since 2023. Rising fuel costs are seen as the main driver and are expected to lift euro-area inflation toward 4% later this year. 7% for the 21-country euro area in September, but several national releases this week topped estimates, raising upside risk. Market participants say the higher inflation backdrop could lead to further rate increases, but the odds of an ECB October hike have eased because the shock remains concentrated in energy.
ECB President Lagarde said the recent global bond-market sell-off should help temper price pressures.