Energy prices surge 18.8% amid Middle East war

EU flags fly outside the Europa Building in Brussels, Belgium. [Getty Images]
EU flags fly outside the Europa Building in Brussels, Belgium. [Getty Images]

Inflation in the eurozone — the 21 countries that use the euro — soared to its highest level in three years, driven by a sharp spike in energy prices.

Eurostat, the EU's statistical agency, said Friday (local time) that consumer prices in the eurozone rose 3.8 percent year-on-year in September in a preliminary estimate, the highest rate since September 2023, when inflation stood at 4.3 percent. The increase marked a significant acceleration from the 3.2 percent recorded in August.

Energy prices led the surge, climbing 18.8 percent from a year earlier. The gain outpaced August's 14.3 percent rise as the ongoing Middle East war and a prolonged blockade of the Strait of Hormuz continued to push costs higher.

Services inflation also edged up, from 3.0 percent in August to 3.2 percent in September. Core inflation — which strips out energy, food and alcohol — ticked up from 2.4 percent to 2.5 percent. Prices for food, alcohol and tobacco rose from 1.1 percent to 1.4 percent.

The European Central Bank, seeking to rein in inflation, raised interest rates in June for the first time since 2023 and followed up with another hike last month.


siuu@heraldcorp.com