Inflation across the European Union has reached a record high of 10%.
The latest data from Eurostat shows that inflation in the Euro zone climbed to an annualized
10% in September, up from 9.1% in August and above consensus forecasts for 9.7%.
The reading also showed price increases broadening out from the volatile food and energy
sectors as nearly all segments succumbed to inflationary pressures in September.
Energy prices across the 19-member economic zone rose 40% year-over-year, followed by
food, alcohol and tobacco, which rose 11.8% in September from a year earlier.
Core inflation that strips out food and energy prices climbed 4.8% from last year, which was
greater than August’s 4.3% advance.
The latest inflation reading puts added pressure on the European Central Bank (ECB) to
aggressively raise interest rates at its next meeting in October and increases the possibility of a
recession on the continent.
Earlier in September, the ECB raised interest rates by 75 basis points, lifting its deposit rate to
0.75% from zero and raising the main refinancing rate in Europe to 1.25%, the highest level
since 2011.
