Eurozone inflation rose to 2.2% in September, up from 2.0% in August, Eurostat reported.
Core inflation stayed firm at 2.3% for the fifth consecutive month, reflecting persistent underlying pressures.
Services drove the surge, rising 3.2%, while food, alcohol and tobacco increased 3.0%.
Energy and Regional Differences Shape Trends
Energy prices declined 0.4%, a slower fall than August’s 2.0% drop, showing easing but persistent pressures.
Estonia recorded the highest inflation at 5.2%, followed by Croatia and Slovakia at 4.6% each.
Cyprus posted no inflation change, while France reported only 1.1% growth, highlighting divergent regional dynamics.
ECB Holds Steady as Markets React
The ECB kept deposit rates at 2.00% in September, projecting inflation to cool through 2026.
Christine Lagarde emphasized patience, claiming the ECB remains “in a good place” to keep policy steady.
Markets expect no rate change on October 30, though inflation’s rise strengthens the ECB’s cautious stance.
Dollar Weakens as Euro Gains Ground
The euro climbed to 1.1750 against the US dollar amid fears of a US government shutdown.
Shutdown risks pressured Wall Street futures and muted European equities despite modest index gains.
Sartorius jumped 9%, Sanofi rose 4%, and Novo Nordisk gained 3.3%, while defence stocks slumped.
