Eurozone inflation climbed to 2.2% in September, rising from 2.0% in August, Eurostat reported.
Core inflation stayed firm at 2.3%, showing persistent underlying price pressures.
Services prices rose 3.2%, while food, alcohol, and tobacco increased 3.0%.
Non-energy industrial goods remained stable at 0.8%, and energy prices declined 0.4%.
Regional Trends Show Mixed Picture
Estonia recorded the highest inflation at 5.2%, with Croatia and Slovakia following at 4.6% each.
France registered a mild 1.1% rise, while Cyprus saw no change.
Italy and Portugal led monthly increases at 1.3% and 1.0%, suggesting regional price acceleration.
The data marked inflation’s strongest pace since April, yet economists saw no drastic shift in outlook.
ECB Holds Steady as Markets React
The ECB kept deposit rates at 2.00% in September, projecting inflation to ease through 2026.
Christine Lagarde said the bank is “in a good place” to hold rates steady.
Economists noted cooling wage growth and weaker energy costs as reasons inflation should decline.
Markets expect the ECB to leave rates unchanged at its next meeting on 30 October.
Meanwhile, the euro rose to 1.1750 against the dollar, lifted by US shutdown concerns.
Wall Street futures dipped, but the EURO STOXX 600 climbed 0.5% on pharmaceutical gains.
