By Michele Maatouk
Date: Wednesday 20 Oct 2021
(Sharecast News) - Eurozone inflation rose as expected in September, according to data released on Wednesday by Eurostat.
Consumer price inflation increased to 3.4% from 3.0% in August, in line with the initial estimate. The headline number came in well above the European Central Bank's 2% target, mainly due to a 17.6% jump in energy prices on the year. The cost of food, alcohol and tobacco also contributed, up 2%.
The core rate of inflation, which excludes volatile elements such as food and fuel, edged up 0.3 percentage points to 1.9%, also in line with the initial estimate.
Jack Allen-Reynolds, senior Europe economist at Capital Economics, said: "Eurozone inflation looks set to climb further in the coming months as higher input and energy costs feed through.
"An unusually cold winter would put even more upward pressure on gas prices in the short term, but we still think that headline and core inflation will fall sharply next year to well below 2%."
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